Summary
Allbirds, a shoe company known for its eco-friendly trainers, announced it will shift its business to focus on artificial intelligence (AI) computing. The company plans to buy powerful computer chips and offer AI cloud services, leading its shares to rise sharply.
Key Facts
- Allbirds is changing from a footwear company to an AI computing company called NewBird AI.
- The company made a $50 million deal to start buying advanced computer chips called GPUs, which help run AI.
- NewBird AI aims to provide on-demand AI computing power and cloud services.
- Allbirds shares rose over 580% after the announcement, though still much lower than their 2021 peak.
- The Allbirds shoe brand was sold to the American Exchange Group earlier this year for $39 million.
- Founded in 2015, Allbirds became popular among tech workers and celebrities.
- The company has been losing money and its stock price dropped from over $500 to around $2.50 before the AI pivot.
- CEO Joe Vernachio believes the new AI focus will help the company succeed in the future.
