Allbirds Shares Surge 550% as Company Pivots from Shoes to AI

Allbirds shares surged more than 550 percent after the company announced a dramatic shift away from footwear to focus on artificial intelligence infrastructure.

Allbirds' strategic pivot reflects broader market momentum toward AI infrastructure. (Photo: Allbirds Facebook)

According to Quirino Mealha of Euronews, the company is divesting its core footwear business and securing $50 million (€42.4 million) in funding to acquire GPUs and rebrand as NewBird AI.

The move marks a sharp departure from its identity as a sustainable footwear brand, positioning the company instead as a provider of AI computing resources amid surging demand.

Allbirds has entered into an agreement to sell its brand and footwear assets to American Exchange Group, which plans to continue operating the legacy business.

The strategic pivot reflects broader market momentum toward AI infrastructure, as companies redirect capital toward high-growth technology sectors.