Industry
Allbirds abandons clothes, pivots to 'AI compute infrastructure'
Allbirds is abandoning its core footwear business and pivoting to AI compute infrastructure, backed by a $50 million convertible financing facility — more than double its prior market value. The move
Allbirds is abandoning its core footwear business and pivoting to AI compute infrastructure, backed by a $50 million convertible financing facility — more than double its prior market value. The move comes alongside a deal to sell its footwear brand and assets to American Exchange Group, with the company planning to rebrand itself as NewBird AI. The pivot follows a steep decline in the company's core business, with full-year revenue falling 20% in 2025 and 25% the year prior, and the stock down roughly 99% from its peak.
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Source: Ars Technica | 2026-04-15