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Allbirds Shares Jump 350% After AI Pivot, Plans Rebrand to NewBird AI

The unproven strategy hinges on a $50 million raise to buy GPUs for long-term leasing.

Overview

  • Following Wednesday’s AI announcement, the stock spiked nearly 600% intraday and ended the week up about 350% after brief volatility halts under exchange rules.
  • The company said it will shift from shoes to AI compute by buying high‑performance chips and leasing access to customers who cannot get capacity from big cloud providers.
  • Management plans to rebrand the business as NewBird AI and seeks $50 million in new funding, with the company guiding to a second‑quarter close for the raise.
  • In late March, Allbirds sold its footwear assets to American Exchange Group for $39 million, and the buyer will keep selling Allbirds‑branded shoes.
  • Analysts questioned feasibility, citing limited capital, little data center experience, and deep losses as market researchers flagged meme‑style retail trading in the rally.