Allbirds goes soleless and pivots to AI
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Allbirds, a former shoe company, is pivoting to AI and changing its name to NewBird AI, with a $50 million investment to fund its AI compute infrastructure. The company will focus on providing access to high-performance AI hardware for clients.
Allbirds, a company known for its wool sneakers, is abandoning its shoe business to become an AI firm called NewBird AI. An unspecified investor has agreed to provide $50 million in funding for the company's AI compute infrastructure. The funds will be used to acquire high-performance, low-latency AI compute hardware, which will be leased to clients under long-term arrangements. NewBird AI aims to address the shortage of AI compute resources faced by enterprises, AI developers, and research organizations. The company's stock rose 600 percent after the announcement. Allbirds had previously reached a peak valuation of over $4 billion after its 2021 IPO but struggled to find a wider market for its products. The company's pivot to AI marks a significant shift in its business model, leveraging its existing resources to enter a new market.
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