Allbirds pivots to AI, stock surges 600 percent

Allbirds, once known for its popular Wool Runner shoes, is undergoing a dramatic transformation after struggling financially since its 2021 IPO. The company, which saw sales plummet by nearly 50 percent between 2022 and 2025 and failed to achieve profitability, announced plans to sell its assets for $39 million. However, its shell company is being repurposed. CEO Joe Vernachio revealed a strategy to raise $50 million from an investor to establish NewBird AI, a new venture focused on providing GPU-as-a-Service and AI-native cloud solutions. This strategic shift has already led to a remarkable 600 percent increase in its stock value.