Allbirds Sells Assets for $39 Million and Plans Pivot to AI Infrastructure

Allbirds has agreed to sell all its assets for $39 million, marking a significant shift in its business strategy. The company, which was previously valued at $4 billion, announced on Wednesday that it will pivot from footwear to artificial intelligence infrastructure, rebranding itself as NewBird AI.

The sale includes Allbirds' core business, which has been known for its environmentally friendly footwear.

An unnamed investor has committed $50 million to finance this transition, which will be used to purchase graphics processing units (GPUs) necessary for AI operations. 99, up from less than $3 just days prior. In its statement, Allbirds noted that the rise of AI development has created unprecedented structural demand for specialized computing resources that the market is struggling to meet.

The company stated, 'NewBird AI is being built to help close that gap,' addressing the challenges developers and research groups face in securing necessary resources for AI at scale. Founded in 2015, Allbirds earned its B Corp certification in 2016 and became a public benefit corporation the same year.

However, the company plans to shift its focus away from environmental conservation, as indicated in an SEC filing.

Stockholders will vote next month on proposed changes, including the removal of environmental commitments from its charter and revoking its status as a public benefit corporation. If accepted, Allbirds stated it would operate in the best interests of its stockholders without balancing these interests against public benefits related to environmental conservation.