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Allbirds Pivots to AI as “NewBird AI” With $50 Million Deal as Shares Swing

The shift still requires a May 18 shareholder vote.

Overview

  • The former shoe brand said Wednesday it will move into AI compute under the NewBird AI name, sending the stock up several hundred percent before a near 30% pullback Thursday.
  • Allbirds agreed to sell its brand and footwear assets to American Exchange Group for about $39 million and says the remaining public company will lease access to high‑performance graphics chips to customers.
  • The company lined up a $50 million convertible financing facility with an institutional investor that it expects to close in the second quarter, subject to stockholder approval at the May 18 special meeting.
  • A shareholder filing shows the company also seeks to remove its prior public‑benefit and environmental language from its charter as it reorients toward data‑center infrastructure.
  • Analysts warned the plan carries heavy execution risk because AI infrastructure needs costly GPUs, long‑term power and cooling deals, and specialized operators, and they noted that $50 million is small for this market.