Allbirds’ stocks have soared after the shoe company announced it is pivoting to AI. Its shares rose more than 300%, CNBC reported, after the footwear company’s unexpected announcement.
“The company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service,” Allbirds said in a statement published on its website.
Shares in Allbirds, which were trading below $3 a day ago, jumped above $10. This is quite the recovery after shares plunged more than 80% over the past two years, with sales going from $298 million in 2022 to $152 million in 2025.
CNBC also reported that the new company, which expects to be called NewBird AI, announced a deal to raise up to $50 million in funding, with the funding expected to close in the second quarter of 2026.
Allbirds announced a deal with American Exchange Group to sell its intellectual property and other assets for $39 million, CNBC also said. American Exchange Group is a brand management company specialising in accessories.
This announcement comes just two months after the company closed all of its full-price US stores. Now, there are only two outlet stores in the US and two full-price stores in London, with Allbirds focusing on e-commerce
“This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy,” CEO Joe Vernachio said in a statement.
“We have been opportunistically reducing our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”
According to CNBC, the move to AI echoes a classic stock market move of troubled companies “pivoting to the hot industry of the moment in order to garner interest”.
Allbirds was founded in 2015 by former professional soccer player Tim Brown and renewable resources expert Joey Zwillinger, aiming to make shoes using natural materials and not plastics.
