Allbirds Shoe Brand Pivots to AI, Sending Shares Soaring 580%
In a stunning corporate reversal, Allbirds, the once-buzzy sustainable shoe startup beloved by Silicon Valley and celebrities, has announced it is abandoning its footwear business entirely to pivot to artificial intelligence. The San Francisco-based company, which had fallen on hard times, revealed plans on Wednesday to rebrand as NewBird AI and become a provider of GPU computing power, a move that sent its shares skyrocketing 582% and added approximately $127 million in market value. The surge lifted the company's valuation from a meager $21 million, with its stock price jumping from under $3 to around $17 per share. The dramatic pivot has drawn widespread attention and skepticism, with industry observers noting the extreme nature of the shift from manufacturing minimalist wool sneakers to entering the highly competitive AI infrastructure market. Sources indicate the company's new direction is predicated on leveraging its available cash to purchase GPU clusters, capitalizing on the massive financial returns currently associated with AI technology. However, many analysts have expressed concerns that this optimism may be overstated, suggesting the market could be in an AI bubble reminiscent of previous tech hype cycles. The move has drawn direct comparisons to other infamous corporate pivots, such as Long Island Iced Tea Corp.'s rebranding to Long Blockchain in 2017, which also sparked a massive but short-lived stock surge before the company was eventually delisted. Similarly, media company BuzzFeed's own AI pivot in 2023 led to a huge rally followed by a 95% decline from its peak, with the company now reportedly near bankruptcy. While the pivot is pending shareholder approval, the immediate market reaction highlights the powerful investor fervor surrounding AI, even as questions remain about what specific expertise NewBird AI brings to the field beyond financial capital to acquire hardware.
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Sources
The company's share price shot up more than 500% on the news, offering some sense of the ongoing excitement for AI investments. ... A shopper carries an Allbirds bag in New York in 2019. Gabby Jones / Bloomberg via Getty Images file ... The shoe brand that was once a favorite of the Silicon Valley tech ...
Shares in Allbirds surge after maker of wool sneakers announces pivot to AI | Business | The Guardian
Rebrand as NewBird AI sent shares up 582% in bizarre and rapid turnaround for firm that had fallen on hard times ... Allbirds, the maker of minimalist wool sneakers beloved by Silicon Valley, announced on Wednesday that it is leaving shoes behind and pivoting to artificial intelligence.
Struggling shoe retailer Allbirds makes bizarre pivot to AI, adds $127 million in value
Allbirds made a surprising announcement Wednesday that it is pivoting from shoes to artificial intelligence. The move boosted shares of the miniscule market cap company — it was valued at about $21 million at Tuesday's close — by 582%. The shares, which were under $3 a day ago, jumped to about $17. The company announced that it's pivoting its business to AI ...
Allbirds says it's ditching footwear and pivoting to become an AI company - CBS News
The San Francisco-based company is entering the AI race at a time when the technology is delivering huge financial returns for investors. Many think the optimism is overstated, citing concerns that the market could be in an AI bubble. Allbirds framed its pivot as a way to help fill a gap in ...
It’s unclear what exactly NewBird AI is bringing to the table beyond the cash to buy a bunch of GPUs. Maybe these days that’s all it takes. This is all pending shareholder approval, but for what it’s worth, investors love the move; Allbirds stock popped 400 percent on the news. AllBirds did not respond to a request for comment. If nothing else, the pivot ...
It’s objectively pretty funny that Allbirds is becoming an AI company — not because it’s unusual for companies to pivot, but because of how extreme this pivot is. The maker of the shoes once craved by the Silicon Valley tech set is now going to be a provider of GPUs.
From wool sneakers to GPUs: Allbirds’ desperate AI pivot and 600% stock surge, explained | Fortune
Remember when Long Island Iced Tea Corp., a small beverage maker, changed its name to Long Blockchain and declared that it would “leverage the benefits of blockchain technology”? Its stock surged 500%, but within months, the shares were delisted from the Nasdaq. Allbirds last week announced ...
Allbirds Stock Surges As the Company Trades Sneakers for AI - Business Insider
The stock surged almost 500% on the news. The company was delisted in 2021 and the SEC charged three people connected to the company with insider trading. More recently, media company BuzzFeed pivoted to AI in 2023, sparking a huge stock rally. Shares are down nearly 95% from their 2023 peak, and reports earlier this year said the company is teetering at the edge of bankruptcy. Allbirds...
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