Allbirds is pivoting into artificial intelligence after selling its brand and assets for $39 million, rebranding as NewBird AI. The company announced a $50 million convertible financing facility from an undisclosed institutional investor to support its transition into a GPU-as-a-service and AI-native cloud provider.
The move follows the divestment of its footwear business to American Exchange Group, with the transaction still pending shareholder approval. If completed, shareholders are expected to receive a dividend in the third quarter.
NewBird AI plans to deploy the new capital toward acquiring GPU infrastructure and building AI compute services for customers. The company also signaled intentions to expand through partnerships and potential acquisitions as it establishes itself in the AI infrastructure market.
