Allbirds, once a popular eco-friendly shoe brand, is shifting its focus to artificial intelligence (AI) and rebranding as NewBird AI. The San Francisco-based company has secured $50 million in financing from an unnamed investor to purchase graphics processing units (GPUs) for AI infrastructure. This move comes after Allbirds sold its intellectual property to American Exchange Group for $39 million, a significant drop from its $4 billion valuation in 2021. The company, founded in 2015, initially aimed to create footwear from natural materials but struggled with overexpansion and waning consumer interest. Now, it plans to offer “GPU-as-a-service,” renting computing power to AI companies. This pivot has surprised industry experts, as running AI infrastructure requires significant resources and expertise. Allbirds has closed most of its physical stores, focusing on e-commerce and partnerships.
QUESTION: How might Allbirds’ shift to AI impact its brand identity and customer loyalty?
Allbirds, a former Wall Street darling fallen on hard times, looks to AI for its future
