Allbirds says it will become NewBird AI and leave the shoe business

In short: Allbirds says it is exiting shoes and rebranding as NewBird AI to sell rented computing power for AI.

What happened

Allbirds, known for sustainable shoes, said on April 15, 2026 that it is pivoting into AI infrastructure and will rebrand as NewBird AI. The company had already sold its shoe business assets and intellectual property in March 2026 for $39 million to American Exchange Group.

Allbirds also closed most of its retail stores in February 2026, keeping only a small number of outlets. In its 2025 annual report, it reported a $77.3 million net loss on $152.47 million in revenue and warned there was “substantial doubt” about its ability to keep operating.

To fund the new plan, the company said it has lined up $50 million in convertible debt, which is a loan that can later turn into company stock. It plans to buy GPUs, which are high-powered computer chips often used to train and run AI systems, and rent that computing power to AI developers. Think of it like renting out heavy-duty engines by the hour instead of selling shoes.

The announcement sparked a surge in the stock price, with shares rising roughly 300% to 800%, from around $3 to nearly $18. Reports also pointed to short covering, meaning investors who bet against the stock rushed to buy shares back.

Why it matters

This is a clear example of how strongly the market reacts to anything connected to AI right now, even when a company has little experience in the field. NewBird AI still faces practical hurdles, like actually getting enough GPUs, securing electricity and cooling for data centers, and hiring specialized staff, while competing with much larger tech firms.

Source: NYTimes