Allbirds Pivots to AI, Stock Soars 582% After Selling Sneaker Business for $39M

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4.16.2026

Quick Facts

Allbirds stock surged 582% to close between $14.50-$16.99 after announcing its pivot from sneakers to AI infrastructure
The company sold its footwear assets to American Exchange Group for $39 million and will rebrand as NewBird AI
NewBird AI secured $50 million in convertible financing to acquire AI compute hardware for lease arrangements

Allbirds completed one of the most dramatic corporate transformations in recent memory Wednesday. The sustainable sneaker company’s stock soared 582% after announcing it will abandon footwear to become an AI infrastructure provider.

The company closed between $14.50 and $16.99 per share, up from Tuesday’s close of $2.49. Some reports showed gains as high as 700% during intraday trading.

Allbirds sold its footwear assets and branding to American Exchange Group for $39 million. The company will rebrand as NewBird AI and focus on acquiring high-performance AI compute hardware for long-term lease arrangements.

CEO Joe Vernachio, who joined in March 2024, outlined the strategy: “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.”

The transformation comes after years of declining performance. Sales plummeted nearly 50% between 2022 and 2025, falling from $298 million to $152 million. The stock was down roughly 99% from its peak before Wednesday’s surge.

NewBird AI secured $50 million in convertible financing from an undisclosed institutional investor. The funding is expected to close in the second quarter of 2026.

The company plans to abandon its environmental commitments. Allbirds will ask shareholders to approve removing references to “environmental conservation public benefit” from its charter next month.

Retail analysts expressed skepticism about the pivot. “It is the ultimate Silicon Valley ghost story,” one analyst said. “The shoes are gone, but the spirit of the hype cycle remains.”

Industry observers questioned the company’s AI expertise. “Quite what expertise the so-called NewBird AI has in the space and how it intends to capture market share remain unclear,” experts noted.

The move follows other struggling companies pivoting to high-growth sectors. Core Scientific shifted from Bitcoin mining to AI in 2024. Long Island Iced Tea’s 2017 blockchain rebrand sent shares up 275%, though gains proved short-lived.

Allbirds closed all its U.S. full-priced stores in February, ending its retail expansion strategy. The company was valued at more than $4 billion at its peak before going public in 2021.