Allbirds (BIRD) shares jumped more than 800% on Wednesday after the company said it will sell its footwear business and pivot into AI infrastructure, supported by a $50 million convertible financing facility.
The company said it is moving forward with a previously announced sale of its footwear and brand assets to American Exchange Group. Once the deal closes, Allbirds plans to refocus on AI infrastructure and GPU compute services, aiming to become a GPU-as-a-Service (GPUaaS) cloud provider under a possible new name, “NewBird AI.”
The financing and asset sale require shareholder approval, with a special meeting scheduled for May 18, 2026. The company also proposed a special shareholder dividend in Q3 2026, contingent on the asset-sale approval. The restructuring would separate the legacy consumer brand from the new AI infrastructure business.
Proceeds from the financing will be used to acquire high-performance GPUs to address rising demand for AI compute, as global supply constraints and increased enterprise AI adoption tighten available capacity. Allbirds says it plans to scale into a full AI cloud platform over time.
Allbirds shuts US stores amid deep financial struggles
The footwear division faced mounting financial and operational pressure, with falling revenue, heavy losses, and store closures prompting a strategic overhaul. The company reported a 23% year-over-year revenue decline in Q3 2025 and accumulated $419 million in losses over five years, despite reaching $1.2 billion in sales. Its stock fell about 95% from its 2021 peak, raising Nasdaq delisting concerns. Expansion beyond its core wool sneaker line into apparel and other categories is believed to have diluted the brand. By early 2026, Allbirds closed all full-price U.S. retail stores except two locations and moved toward a more e-commerce-focused model. Leadership changes, including the departure of co-CEO Joey Zwillinger, reflect the company’s restructuring after rapid post-IPO expansion strained its sustainability-centered identity.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
