Allbirds stock rises 400 percent on shift to AI computing
Allbirds shares rose over 400 percent after announcing a pivot to AI infrastructure. The firm will raise 50 million dollars for GPUs and rebrand as NewBird AI.
Shares of ALLBIRDS INC-CL A surged more than five-fold on Wednesday after the footwear manufacturer announced a strategic pivot toward artificial intelligence computing infrastructure. The San Francisco-based company, which operates primarily in the United States, revealed it has entered into a $50 million convertible financing agreement with an institutional investor. The proceeds are earmarked for the acquisition of graphics processing units (GPUs) as the firm attempts to capitalize on the massive corporate investment currently flowing into AI technology.
Under the proposed overhaul, Allbirds plans to rebrand itself as NewBird AI. The company intends to shift its focus toward offering cloud computing capacity and AI services, although specific details regarding the execution of this new business model were not immediately provided. This transition comes as the firm has been aggressively scaling back its traditional retail footprint, shuttering most of its brick-and-mortar stores in recent months due to sluggish demand and a move toward online-only partnerships.
