Allbirds pivots to AI compute shares jump 400%

Allbirds said it will exit its core sneaker business and pivot to AI infrastructure, sending shares up as much as 400% in early trading.

The company plans to sell its footwear brand to American Exchange Group and rebrand as NewBird AI, backed by a $50 million convertible financing facility.

The funding, more than double Allbirds’ pre-announcement market value, will be used to acquire GPUs and build AI computing infrastructure.

Shares surged from around $2.49 to as high as $12.72, reflecting investor enthusiasm for AI-related business models despite the company’s weak fundamentals.

The pivot follows steep declines in Allbirds’ core business, with revenue falling 20% in 2025 and 25% the year prior, alongside store closures across the US.

The move mirrors a broader trend of companies shifting toward AI infrastructure amid rising demand for compute power and limited supply.

Crypto-linked firms such as MARA Holdings and Bitfarms have also redirected resources toward AI workloads.

The structure of the convertible financing could lead to future shareholder dilution, as investors may convert debt into equity at discounted terms.