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World Economy
Apr 15, 2026

Allbirds Stock Surges 582% as Eco-Friendly Shoe Maker Pivots to AI

AI Summary
Shares in eco-friendly shoe maker Allbirds surged 582% after the company announced it is pivoting to artificial intelligence and rebranding as 'NewBird AI'.

Shares in eco-friendly shoe maker Allbirds experienced a dramatic surge of 582% after the company announced a sudden pivot to artificial intelligence and rebranding as 'NewBird AI'. The unexpected move sent the company's stock price soaring during a flurry of trading.

Allbirds, known for its minimalist wool sneakers popular in Silicon Valley, had struggled in recent years, with its shares losing 99% of their worth since 2021. The company was once valued at $4 billion but had fallen into disrepair. Earlier this month, Allbirds announced plans for a $39 million sale to brand management firm American Exchange Company.

The company's new focus will be on acquiring graphics processing units to support AI compute. Allbirds stated, “The rise of AI development and adoption has created unprecedented structural demand for specialized, high-performance compute that the market is struggling to meet. NewBird AI is being built to help close that gap.”

Allbirds has secured $50 million in funding from an unnamed investor for its new AI operation, according to a filing with the Securities and Exchange Commission. The company will shift from its status as an eco-conscious public benefit corporation to a conventional corporation, with a reduced focus on environmental conservation.

Despite its initial success, with sustainability central to its marketing and endorsements from celebrities like Leonardo DiCaprio, Gwyneth Paltrow, Oprah Winfrey, and Barack Obama, Allbirds struggled to sustain momentum and largely fell out of fashion. The company closed its last physical stores in the US in January and reported a $20.3 million loss in the third quarter of last year.

Allbirds is now awaiting shareholder approval for American Exchange Company’s purchase of the company in a vote next month. The sale will enable Allbirds “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.”