Struggling shoe retailer Allbirds makes bizarre pivot from shoes to AI, stock explodes more than 300%
Allbirds shifts focus from footwear to AI technology.
Allbirds has made a surprising shift from its core business of sustainable footwear to artificial intelligence, resulting in a dramatic stock price increase of over 300%. The company recently sold its intellectual property and assets for $39 million and is now focused on launching NewBird AI, which aims to provide AI compute infrastructure and has plans to raise up to $50 million in funding.
Key Takeaways
- 1.
Allbirds' stock rose from under $3 to above $10 following the announcement.
- 2.
The company sold its assets to American Exchange Group for $39 million.
- 3.
Allbirds plans to raise up to $50 million for its new AI venture.
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