Gate News message, April 16 — Allbirds, the eco-friendly footwear brand listed on Nasdaq (BIRD), announced on April 15 a dramatic business transformation, securing a $50 million convertible financing round to shift focus to AI computing infrastructure. The company plans to rebrand as NewBird AI and will deploy the capital to acquire high-performance GPU assets for customers requiring dedicated AI compute resources.
The financing is expected to close in Q2 2026, with a special shareholder meeting scheduled for May 18, 2026. Allbirds also announced plans to issue a special dividend to shareholders pending approval of concurrent asset sales, with a record date of May 20, 2026. Following the announcement, Allbirds stock surged 582% to close at $16.99 per share on April 15, pushing the company’s market capitalization from $21 million to $148 million.
The pivot comes after Allbirds agreed in March to sell its brand and shoe assets to American Exchange Group, a brand management company, for $39 million. The company, which went public in 2021 at a peak valuation of $4 billion, has faced mounting pressure in recent years due to declining sales and increased competition. Revenue fell 15% to $254 million in 2023 and further declined to approximately $190 million in 2024. Through the first three quarters of 2025, the company accumulated net losses of approximately $57.7 million.
Market observers have characterized the transformation as another AI-related “shell game.” Renowned financial commentator Jim Cramer called the move “absurd” and noted visible signs of a “bubble.” Matt Maley, chief market strategist at Miller Tabak + Co., similarly warned of a bubble underlying the stock surge, cautioning investors despite the broader strength in U.S. equities. The Wall Street Journal noted that $50 million is modest for AI infrastructure, with competitors like CoreWeave planning $300-$350 billion in annual expansion and smaller players like Nebius allocating $160-$200 billion, suggesting Allbirds may face significant competition for scarce GPU supply.
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