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Allbirds, a San Francisco-based shoemaker, saw its share price surge more than fivefold on Wednesday (April 15) after the company announced it was raising capital and focusing on artificial intelligence (AI) computing infrastructure.
Allbirds is planning to rebrand itself as ‘Newbird AI’ and announced that it will close a $50 million convertible financing deal with an institutional investor. The company plans to use the proceeds to acquire graphics processing units (GPUs).
The company also plans to shift its focus to providing cloud computing capabilities and AI services over time, although it has not provided full details about its new strategy.
This major reform comes at a time when investors are showing strong interest in AI-related stocks and the data-center infrastructure that supports it. Investors are pouring hundreds of billions of dollars into the sector in hopes of profiting.
Reuters reported that Allbirds has been closing most of its physical stores over the past few months due to falling demand and a shift toward online partnerships, and last month the company sold its brand and footwear assets to American Exchange Group for $39 million.
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The company’s stock price is up 435% to $13.33, giving the company a market value of $116 million, according to LSEG Data & Analytics, a global financial data provider.
Reuters’s reporting contributed to this article.
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