Allbirds, the once-$4 billion footwear startup, announced on April 15 that it is pivoting to become an AI compute infrastructure company, rebranding as NewBird AI and transforming a $50 million cash infusion into a GPU-as-a-Service business.
The dramatic shift comes just one week after Allbirds announced a new canvas cruiser shoe collection, and less than three weeks after the company sold its intellectual property to American Exchange Group for $39 million on March 30. The sale marked a stunning fall for a company that reached a $4 billion valuation when it went public in 2021 but suffered years of financial losses as sales failed to match the hype around its Merino wool sneakers.
NewBird AI plans to build “high-performance GPU assets” and develop into a GPU-as-a-Service provider, citing unmet demand from enterprises and AI developers unable to secure compute resources needed to build and train AI at scale. American Exchange Group, which also owns brands like Aerosoles and Ed Hardy, will continue operating the Allbirds apparel business.
Allbirds joins a growing list of companies pivoting to AI compute infrastructure. Boom Supersonic, developing a supersonic airliner, is selling
Source: Business Latest