Allbirds Stock Spikes 400% on Pivot From Shoe Brand to AI Compute—Yes, Actually

The sustainable footwear company Allbirds he announced on Wednesday that it will drive its business to the AI ​​computing infrastructure, getting $50 million in flexible funds to support major changes. The company entered into a definitive agreement with an entrepreneur in the company when it divested its shoe business to run GPU-as-a-Service services.

Allbirds said it has entered into a definitive agreement to sell the Allbirds brand and footwear brand to American Exchange Group, a brand management company focused on the accessory space, for $39 million. The company hopes to change its name to NewBird AI, with a vision to become a GPU-as-a-Service and AI-native cloud solutions provider.

Investors like the pivot of the concerned brand, and BIRD shares are increasing more than 400% on Wednesday opening the daily interest rate of $ 12.72. As of this writing, BIRD is trading at $10.97 per share, up nearly 340% from its highest price since last July.

According to the company’s statement, NewBird AI expects to use the initial funding from the fund to acquire high-performance GPU assets, which will be deployed to support customers who need dedicated AI compute access.

“The company will initially seek to acquire high-performance, low-cost AI infrastructure and provide access to long-term leases, meeting customer requirements that local markets and hyperscalers cannot reliably operate,” it said.

The exchange is expected to close in the second quarter of 2026, according to the company’s filing. Allbirds has scheduled a special meeting of shareholders on May 18, for holders of record as of April 13. The company also expects to offer a special dividend for the third quarter of 2026 to holders of record as of May 20.

The pivot comes as Allbirds faces financial difficulties, with the company’s market cap hovering around $21 million despite its unicorn past. Shares fell to Tuesday around $2.49 a share, down more than 60% in the past six months.

The company burned through cash, posting a net loss of $58.23 million over the past 12 months. Chardan, an investment bank that acts as a flexible investment provider, has developed a partnership to provide quick cash flow while providing investors with flexible options.

The demand for AI computing power has inspired several Bitcoin mining companies to adapt their mainframes to the evolving computing needs, although Allbirds did not have a computer base to begin with.

The change commemorates the beverage company’s 2017 pivot to Long Blockchain Corp.—a move that also fueled the stock’s early rally. However, the company’s shares were removed from the Nasdaq and delisted from the market entirely by the SEC. Later, three people were contacted by the company The value of SEC shares tied to the pivot.