Allbirds' stock price has surged more than fivefold amid the shift toward artificial intelligence
Shares of the American company Allbirds surged—more than fivefold—following the announcement of a new investment round and a shift in its business strategy toward artificial intelligence.
This was reported by Reuters.
The footwear manufacturer announced that it would enter into a $50 million convertible financing agreement with an institutional investor. The funds raised are planned to be used to purchase graphics processing units (GPUs) for the development of AI infrastructure.
Against this backdrop, the company’s shares surged 435% to $13.33, and its market capitalization reached $116 million. Allbirds shares also became among the most actively traded on the Fidelity platform.
The company plans to change its name to NewBird AI and gradually reorient its business toward providing cloud computing power and services in the field of artificial intelligence. Details of the new strategy are not being disclosed at this time.
This pivot comes amid high investor interest in AI companies, which are expected to benefit from large-scale investments in the sector.
In recent months, Allbirds has been scaling back its retail presence, closing most of its physical stores due to falling demand and a shift to an online model.
Additionally, last month the company sold its footwear brand and related assets to American Exchange Group for $39 million.
The adoption of artificial intelligence in large companies follows a similar pattern: 20% of employees actively use AI, 20% categorically refuse to use it, and 60% use the tools only partially. Google is roughly in the middle of this broad picture.
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