When changing sneakers for the AI ​​cloud, it accumulates 800% moons

Shares of Allbirds ( BIRD ) plunged more than 800% on Wednesday following news that it would sell its shoe business and move into AI infrastructure with a $50 million financing deal.

The company has previously announced the sale of its footwear and brand assets to American Exchange Group, according to a new statement.

Upon completion, Allbirds plans to move its business into AI infrastructure and GPU computing services, which will be transformed into a GPU-as-a-service (GPUAS) cloud company under the name “NewBird AI.”

The financing and asset sale is subject to shareholder approval, with a special meeting scheduled for May 18, 2026. The restructuring separates the former consumer brand from the future AI infrastructure business.

As global supply constraints and enterprise AI adoption continue to drive shortages of computing capacity, revenue from the facility will be used to meet AI computing demand for high-performance GPU hardware. The company aims to transition to a full AI cloud platform over time.

In deep financial struggles, Allbirds closed its American stores

Allbirds' footwear division has faced severe financial and operational pressures due to declining revenue, heavy losses and store closures, which have forced it to make a strategic change to its business model.

The company reported a 23% year-over-year decline in revenue in Q3 2025, while total losses accumulated to $419 million over the five years, despite gross sales of $1.2 billion.

Shares have fallen nearly 95 percent from their 2021 highs, prompting the Nasdaq to dismiss concerns. The expansion into apparel and broader product categories beyond the original wool sneaker line is believed to have weakened the brand's focus and consumer demand.

In response, Allbirds closed all of its full-price U.S. retail stores by early 2026, leaving just two locations as it transitions to an e-commerce-focused strategy.

The leadership transition, including the departure of co-chief executive Joey Zwillinger, further reflects the company's restructuring after its rapid post-IPO expansion strained its original sustainability-focused identity.