Allbirds rallies over 700% on stunning pivot from footwear to AI
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Allbirds continued to rally on Wednesday, exploding over 700% after the company announced plans to pivot from footwear to artificial intelligence.
Shares in the company were trading at around USD19 ($26.53) at 11:40am EDT (1:40am AEST Thursday), around 650% higher than at close of the previous session.
The surge pushed the company’s market capitalisation to over USD150 million, compared to its roughly USD21 million market cap on Tuesday this week.
Shared via a post on its investor relations page, Allbirds wrote that it had executed a USD50 million convertible financing facility from an unnamed institutional investor to fund the pivot, which will see it evolve into a GPU-as-a-Service and AI-native cloud solutions provider.
The company said it will also change its name to NewBird AI.
Allbirds pivots from footwear to AI, sending shares up 350%
The news: Shoemaker Allbirds announced an unexpected pivot from footwear to AI, sending shares skyrocketing on Wednesday.
The numbers: Shares in Allbirds exploded over 370%, before easing back to USD10.93 ($15.27) per share at 10:30am EDT (12:30am AEST Thursday), around 330% higher. Shares were under USD3 the day prior.
The context: Shared via a post on its investor relations page, Allbirds wrote that it had executed a USD50 million convertible financing facility from an unnamed institutional investor to fund the pivot, which will see it evolve into a GPU-as-a-Service and AI-native cloud solutions provider.
The company said it will also change its name to NewBird AI.
“[The Facility] will enable the Company to pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider. In connection with this pivot, the Company anticipates changing its name to ‘NewBird AI,’” the statement reads.
The news comes less than a month after the struggling company, which was once valued at over USD4 billion, sold its assets and intellectual property to American Exchange Group for USD39 million and announced plans to wind down operations.
The company said NewBird AI 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.”
The source: Allbirds
