Allbirds Pivots from Footwear to AI Cloud Services, Stock Soars 600%
By
Richard Lawler
An everything bagel for the brain. Substantive, layered, well-seasoned.
Summary
Allbirds, the shoe company that went public in 2021 but never turned a profit, is undergoing a dramatic transformation. After selling its name and assets for $39 million and closing remaining stores, the company is pivoting from footwear to artificial intelligence. CEO Joe Vernachio announced plans to raise $50 million to transform the company into NewBird AI, a cloud services company that will sell GPU-as-a-Service. The announcement caused the company's stock to jump 600 percent, despite the company's previous financial struggles and declining sales.
Key quotes
· 4 pulledAllbirds had a hit a decade ago with its Wool Runner shoes, but after a $4 billion IPO in 2021, the business never turned a profit, and sales dropped nearly 50 percent between 2022 and 2025.
The company recently announced it would sell off its name and assets for $39 million to American Exchange after closing the remaining stores.
CEO Joe Vernachio has announced a plan to raise $50 million from an unnamed investor, which will turn NewBird AI into 'a fully integrated GPU-as-a-Service' company.
Allbirds says it's turning into NewBird AI, a cloud services company selling GPUs as a service.
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