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Two weeks ago, Allbirds announced it was selling its brand and footwear assets to American Exchange Group. The wool sneaker era was over. The board had reviewed the deal, unanimously approved it, and the CEO delivered a gracious goodbye speech about “foundational work” and “the next chapter.” It was tidy. It was final. It was a company that had spent a decade selling merino wool sneakers to men who wear fleece vests to work and drive Rivians ultimately accepting that the niche fashion sneaker business was not going to work out.
Then on Wednesday, Allbirds announced it is pivoting to AI compute infrastructure and changing its name to NewBird AI.
Let’s just sit with that for a second as the market interprets this news and sends the stock up more than 600% in Wednesday morning trading.
The company closed its last U.S. retail stores in February, reported a net loss of $20.3 million in Q3 on revenues down 23% year over year, and just agreed to sell its brand for what amounts to a liquidation price, has secured a $50 million convertible financing facility and intends to become, and we are quoting directly here, “a fully integrated GPU-as-a-Service and AI-native cloud solutions provider.” The stockholder vote is May 18. The special dividend goes out in Q3. And the remaining husk of a shoe company will spend its twilight acquiring high-performance GPU assets to serve customers requiring dedicated access to AI compute capacity.
Link: https://finance.yahoo.com/news/allbirds-ai-company-now-seriously-140328814.html