Allbirds (BIRD) shares took off more than 800% on Wednesday following news that it will sell its footwear business and pivot into AI infrastructure backed by a $50 million financing facility.
The company is advancing on its previously announced sale of its footwear and brand assets to American Exchange Group, according to a new statement.
Upon completion, Allbirds intends to shift its business toward AI infrastructure and GPU compute services, targeting a transformation into a GPU-as-a-Service (GPUaaS) cloud company under the potential name “NewBird AI.”
The financing and asset sale are subject to shareholder approval, with a special meeting set for May 18, 2026. The company also plans a special shareholder dividend in Q3 2026, contingent on approval of the asset sale. The restructuring separates the legacy consumer brand from the future AI infrastructure business.
Proceeds from the facility will be used to acquire high-performance GPU hardware to meet rising demand for AI compute, as global supply constraints and increasing enterprise AI adoption continue to drive shortages in available computing capacity. The company aims to scale into a full AI cloud platform over time.
Allbirds shuts US stores amid deep financial struggles
Allbirds’ footwear division faced worsening financial and operational strain with falling revenue, heavy losses, and store closures that forced a strategic overhaul of its business model.
The company reported a 23% decline in year-over-year revenue in Q3 2025, while total losses accumulated to $419 million over five years, despite achieving $1.2 billion in overall sales.
Its stock price collapsed roughly 95% from its 2021 peak, prompting Nasdaq delisting concerns. Expansion beyond its core wool sneaker line into apparel and broader product categories is believed to have weakened its brand focus and consumer appeal.
In response, Allbirds closed all full-price US retail stores by early 2026, keeping only two locations as it shifted toward a more e-commerce-focused strategy.
Leadership transitions, including the departure of co-CEO Joey Zwillinger, further reflect the company’s restructuring after its rapid post-IPO expansion strained its original sustainability-centered identity.
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