April 15 (UPI) — Once known for its sustainable shoes made from natural materials, Allbirds made a surprise announcement on Wednesday — it’s switching from footwear to artificial intelligence computing.
The company’s stock leapt more than 700% on the announcement, jumping from less than $3 to more than $17.
The company, which is changing its name to NewBird AI, said in a press release that it has a $50 million deal with an unnamed investor, with which it will obtain “high-performance GPU assets.” The release said the new company will make these assets available to companies in need of access through long-term lease agreements.
“The rise of AI development and adoption has created unprecedented structural demand for specialized, high-performance compute that the market isstruggling to meet,” the release said. “Global enterprise spending on AI services and data center investment are on the rise.”
This follows a deal the company made last month to sell its shoe brand and other assets to American Exchange Group for $39 million. The press release said this company, which focuses on accessory brands, will continue “the Allbirds brand and legacy.”
Allbirds closed its physical full-price U.S. stores in February, CNBC reported. Founded in 2015, the company was once valued at $4 billion but faltered after it went public in 2021. It was valued at $21 million at the end of the day Tuesday.