Allbirds, the upper-class Millennial-favored shoe company, announced its pivot to AI. In yet another eyebrow-raising company change to artificial intelligence, the footwear brand’s stock soared after the announcement. But will it still sell shoes, or is the company abandoning its original product altogether?
Back in 2019, at a German “Bits & Pretzels” tech conference, Allbirds co-founder Joey Zwillinger spoke about the company’s purpose and its initial mission, per Gizmodo.
“We realized that there was a giant opportunity to take what the footwear industry does — which is make 20 billion pairs of shoes every year — without really much thought towards the environment, and use that as a platform to release something special,” he explained. “I think the thing that made us successful early, I’m quite convinced, is the clarity of message, and the singularity that we offer to consumers.”
Zwillinger added that they were “at the front end of a multi-decade trend where brands do have to stand for something more than just making money, and if they don’t there’s no real way they’re gonna actually thrive and survive on the global stage.”
Here’s what we know about Allbirds’ shift to AI.
Is Allbirds an AI Company Now?
According to its press release, Allbirds acknowledged its sale to American Exchange Group would “enable the company to pivot its business to AI compute infrastructure.”
“Following its prior announcement that it has entered into a definitive agreement to sell the Allbirds brand and footwear assets to American Exchange Group, which intends to continue to build on Allbirds’ legacy and deliver compelling products to Allbirds’ customers (the ‘Asset Sale’), Allbirds, Inc. (Nasdaq: BIRD) (the ‘Company’) today announced the execution of a definitive agreement with an institutional investor for a $50 million convertible financing facility (the ‘Facility’),” the press release reads, in part.
Allbirds added that it will now be called “NewBird AI.”
Is Allbirds Still Selling Shoes?
Technically, Allbirds will still be sold as shoes, just not at the same company. Now that it will be called NewBird AI, the company’s official sale of its brand, Allbirds, to American Exchange Group will allow it to continue producing and selling footwear.
How Did Allbirds’ AI Announcement Affect Its Stock?
Following Allbirds’ AI announcement, its stock jumped between 400 and 600 percent in one day, according to multiple outlets. However, stocks quickly fell between 25 and 30 percent from its peak.
