Barely two weeks after selling its intellectual property (IP) to American Exchange Group for $39 million, Allbirds is ready to fly in a new direction. The company has secured $50 million from an institutional investor to support its pivot to AI compute infrastructure, with a long-term vision to become a fully integrated provider of GPU (Graphics Processing Unit)-as-a-Service and AI-native cloud solutions provider. American Exchange Group will “continue to build on Allbirds’ legacy and deliver compelling products to Allbirds’ customers,” according to a company release.
To mark the change, the company will rechristen itself as “NewBird AI,” and it plans to use the initial capital to acquire high-performance GPU assets that will be deployed to serve customers requiring dedicated access to AI compute capacity. Over time, NewBird AI plans to grow its neocloud platform by expanding compute and service offerings, deepening partnerships with operators and customers and evaluating strategic M&A opportunities.
A potential explanation for the Allbirds/NewBird AI pivot is that the company is seeking to latch onto the buzziest technology of the day. “There’s a history in the stock market of troubled companies pivoting to the hot industry of the moment in order to garner interest,” wrote Lola Murti and Gabrielle Fonrouge in a CNBC article. “During the bitcoin boom, several companies announced a blockchain tie-in or converted outright to a cryptocurrency company to reignite interest in their stock.”
Conversion of the NewBird AI investment facility is subject to stockholder approval, expected to be provided at a special stockholders’ meeting to take place on May 18, 2026, with the deal expected to close during Q2.
Allbirds, founded in 2015, found early success with its comfortable, sustainable footwear and went public in 2021. But the brand had been struggling as far back as August 2024, following its March 2024 announcement of 10-15 forthcoming store closures. Allbirds closed all its U.S. full-price stores in January 2026.
