Once regarded as Silicon Valley's favourite shoe brand, Allbirds now says it's an AI company and Wall Street can't stop smiling as stock jumps 876% in one day
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Allbirds, a San Francisco startup, has pivoted from a shoe brand to an AI compute infrastructure company, causing its stock to surge 876% in one day. The company plans to rebrand as NewBird AI and has secured a $50 million deal to buy GPUs.
Allbirds, a San Francisco startup, has abandoned its shoe business and pivoted to AI compute infrastructure. The company, which will rebrand as NewBird AI, has secured a $50 million convertible financing facility to acquire high-performance GPU hardware. The stock surged 876% in one day, from $2.49 to $24.31 intraday. Allbirds had previously sold its brand and footwear assets to American Exchange Group for $39 million. The company's market cap jumped from $21 million to $165 million, despite having no new customers or proven ability to run a compute business. Shareholder approval is needed for the pivot, with a vote set for May 18.
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