Liputan6.com, Jakarta - Allbirds, a company known for its eco-friendly footwear, announced a surprising business model shft from a shoe manufacturer to a provider of artificial intelligence infrastructure.
This transformation will also be accompanied by a rebranding of the company to "NewBird AI" to symbolize the new era.
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With this bold move, Allbirds aims to capitalize on the unmet demand in high-performance computing for AI.
The company aims to become a key player in providing much-needed computing resources to AI developers and research organizations worldwide.
This move has sparked euphoria in the stock market, with Allbirds' share price surging significantly following the announcement.
Strategic Shift Toward AI Infrastructure
Allbirds is now positioning itself as an artificial intelligence computing infrastructure.
The company's long-term vision is to become a fully integrated provider of GPU-as-a-Service (GPUaaS) and AI-native cloud solutions, where Allbirds will acquire high-performance graphics processing units (GPUs) and then lease access to them to customers requiring AI computing power.
With a focus on GPUaaS, NewBird AI will offer essential services to companies and developers building complex artificial intelligence models.
These services are expected to help bridge the gap between the demand and availability of robust AI computing resources in the global market.
The company believes there is unprecedented structural demand for high-performance specialized computing in the artificial intelligence market.
This gap is difficult for existing service providers to fill, so Allbirds sees a significant opportunity to enter and provide a solution.
Asset Sale and Transformation Funding
To smooth this transition, Allbirds has entered into a definitive agreement to sell its footwear brand and assets.
American Exchange Group is the acquirer of the assets, with the sale price estimated at approximately $39 million.
In addition to the asset sale, Allbirds has also secured a $50 million convertible financing facility from an institutional investor.
Closing of this financing facility is expected in the second quarter of 2026, providing the necessary capital for investment in AI infrastructure.
The rebranding to "NewBird AI" will be an integral part of this strategy.
Reasons Behind the Business Transformation
This dramatic shift is inextricably linked to the difficulties Allbirds has faced in its footwear business.
The company has experienced declining sales, low profits, and a shrinking retail footprint in recent years, as reported by BBC.
Allbirds management identified a significant demand for high-performance, specialized computing in the artificial intelligence market.
Therefore, Allbirds identified a significant market gap to provide much-needed computing resources to AI companies, developers, and research organizations.
Market Reaction and Implications for Shareholders
The announcement of this business shift was met with an overwhelmingly positive reaction in the stock market.
Allbirds' stock price has surged dramatically, ranging from 350% to over 800%, reflecting investor optimism about the potential of new artificial intelligence businesses.
This surge indicates market confidence in the company's ability to adapt and succeed in the technology sector.
However, overall sentiment remains positive, driven by the growth prospects in the artificial intelligence sector.
The asset sale and business transformation agreement still requires shareholder approval, with a special meeting anticipated for May 18, 2026.
Allbirds, Inc. also anticipates paying a special dividend in the third quarter of 2026 to shareholders of record as of May 20, 2026.