Archive — US — techcrunch
After sale of its shoe business, Allbirds pivots to AI
After selling its shoe brand for $39 million, Allbirds rebrands to NewBirdAI, focusing on AI and GPU services. The company secured a $50 million investment and plans to pivot aggressively despite the risks involved, reminiscent of previous corporate pivots such as Long Island Iced Tea's shift to blockchain.
Key points
- Allbirds sold its shoe brand and assets for $39 million.
- The company is rebranding to NewBirdAI to focus on AI and GPU services.
- NewBirdAI announced a $50 million convertible financing from an undisclosed institutional investor.
- The pivot carries risks as shown by the previous failed rebranding of Long Island Iced Tea to blockchain.
- Future plans include acquiring GPU assets and potential partnerships or mergers to expand services.
Why it matters
- The shift to AI reflects a broader trend in technology industries moving towards artificial intelligence solutions.
- Similar corporate pivots in the past, like Long Island Iced Tea's blockchain attempt, illustrate the volatile nature of quick rebranding strategies.
- Investors and companies are increasingly focusing on AI capabilities as a growth area, aligning with trends observed in 2025 IT forecasts.
Allbirds' pivot to AI as NewBirdAI reflects both the potential and risks of rapid corporate reinvention within the growing technology landscape.