Allbirds Sells Shoe Business and Rebrands as NewBird AI

Footwear company Allbirds is making a major shift, according to AI Business, selling its brand and footwear assets to American Exchange Group and planning to rebrand as NewBird AI. The company said it will use a $50 million convertible financing facility to purchase high-performance GPU assets to offer AI compute capacity to customers.

The rebranded company aims to become a fully integrated GPU-as-a-service and AI-native cloud solutions provider. The financing conversion and asset sale remain subject to stockholder approval, with a meeting scheduled for May. If approved, stockholders are expected to receive a dividend later in the year.

Allbirds stated that demand for high-performance compute continues to outpace supply, with GPU procurement lead times increasing and data center vacancy rates hitting record lows. NewBird AI intends to help address this shortage by expanding access to specialized computing resources.

The move comes as major technology companies, including Microsoft, Amazon, Google, and Meta, continue to invest heavily in AI-ready data centers and custom chips to support growing infrastructure needs.