Shares of U.S.-based footwear company Allbirds soared more than 400% on Wednesday after the firm announced a dramatic strategic shift toward artificial intelligence infrastructure and secured new funding to support its transformation.
The San Francisco–headquartered company said it has entered into a $50 million financing agreement with an institutional investor, with proceeds earmarked for the purchase of graphics processing units (GPUs) used in AI computing systems.
Following the announcement, Allbirds shares jumped to $13.33, marking a 435% increase and pushing its market capitalization to approximately $116 million, according to exchange data. The stock was also among the most actively traded on retail platforms, reflecting heightened interest from individual investors.
The company, originally known for its sustainable footwear brand, also revealed plans to rebrand itself as “Newbird AI” and gradually shift its focus toward cloud computing and artificial intelligence services. However, it provided limited details on how the new business model will be executed or monetized.
The move comes amid a broader wave of investor enthusiasm for AI-linked equities and data center infrastructure, as global capital flows accelerate into technologies powering large-scale machine learning systems.
Despite the market reaction, some analysts expressed skepticism about the pivot. Retail sector consultant Bruce Winder questioned the strategic rationale, suggesting the company may be attempting to capitalize on AI hype rather than delivering clear technological value.
Allbirds has already scaled back much of its physical retail footprint in recent months due to weakening demand, while also divesting its footwear assets to American Exchange Group in a $39 million deal.
Once valued at around $3 billion at its Nasdaq debut in 2021, the company has since lost roughly 99% of its market value before its latest volatility-driven rebound.
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