Allbirds, the sustainable footwear company, has announced a sharp pivot to become a GPU-as-a-Service and AI-native cloud provider. The firm secured a $50 million convertible finance facility to fund the shift and plans to rebrand as NewBird AI. The move follows the recent $39 million sale of its brand and footwear assets.
Allbirds revealed its new direction in a news release on Wednesday, stating a 'long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider.' An accompanying SEC filing outlined investigations into acquiring graphics processing units and high-performance computing infrastructure to support AI workloads. The company also seeks stockholder approval to amend its corporate charter, removing references to operating for environmental conservation public benefit. Investors must approve the direction at an upcoming meeting. Stockholders will also need to approve a corporate charter amendment to “remove references to the Company being operated for the environmental conservation public benefit,” according to SEC filings. Just weeks ago, Allbirds sold its 'Allbirds brand and footwear assets' for $39 million to American Exchange Group, which owns brands like Aerosoles and Ecko Unlimited. Last week, the company launched a new line of colorful Canvas Cruiser shoes and partnered with Pantone, moves now overshadowed by the AI announcement. Shares surged over 400 percent to about $13 in morning trading following the news, exceeding recent 12-month highs. This comes after years of losses since the company's 2021 IPO, when shares reached $500 and valuation hit $4.1 billion.
