"Allbirds announced it will pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider."
"After announcing its AI plans, BIRD stock soared 582% yesterday, closing at $16.99 per share, up from $2.49 just the day before."
"Allbirds will be changing its name to NewBird AI, while the 'Allbirds' shoe brand will continue to be sold under its new owner, American Exchange Group."
"If history is any guide, the shoemaker's AI pivot might not turn out as well as investors hope."
Allbirds Inc. announced a surprising transition from a sustainable shoemaker to an AI compute infrastructure provider, planning to become a GPU-as-a-Service company. The stock surged 582% to $16.99 after the announcement, up from $2.49. However, shares fell over 30% in premarket trading the following day. The company will change its name to NewBird AI while selling its shoe brand to American Exchange Group. This pivot raises concerns about the long-term viability of the new business model against established competitors like AWS and Microsoft Azure.
Read at Fast Company
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