Struggling Shoe Retailer Allbirds Pivots To AI, Stock Explodes More Than 700%
(Thursday April 16, 2026 @11:00AM (BeauHD)
from the totally-normal-economy dept.)
Allbirds made a surprise [1]announcement this morning: it's [2]pivoting from sustainable shoes to AI compute infrastructure , rebranding as NewBird AI after selling its brand assets and closing its U.S. full-price stores. The move sent shares soaring more than 700%. CNBC reports:
> The move boosted shares of the miniscule market cap company -- it was valued at about $21 million at Tuesday's close -- by more than 700%. The shares, which were under $3 a day ago, jumped to above $17. [...] The new company, which expects to be called NewBird AI, announced a deal to raise up to $50 million in funding, expected to close in the second quarter of 2026. Allbirds announced a deal with American Exchange Group to sell its intellectual property and other assets for $39 million last month.
"The Company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service," the company said in the announcement.
[1] https://ir.allbirds.com/news-releases/news-release-details/allbirds-inc-executes-50m-convertible-financing-facility
[2] https://www.cnbc.com/2026/04/15/allbirds-bird-stock-shoes-ai.html
> The move boosted shares of the miniscule market cap company -- it was valued at about $21 million at Tuesday's close -- by more than 700%. The shares, which were under $3 a day ago, jumped to above $17. [...] The new company, which expects to be called NewBird AI, announced a deal to raise up to $50 million in funding, expected to close in the second quarter of 2026. Allbirds announced a deal with American Exchange Group to sell its intellectual property and other assets for $39 million last month.
"The Company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service," the company said in the announcement.
[1] https://ir.allbirds.com/news-releases/news-release-details/allbirds-inc-executes-50m-convertible-financing-facility
[2] https://www.cnbc.com/2026/04/15/allbirds-bird-stock-shoes-ai.html