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Allbirds announced Wednesday that the company will pivot from making sneakers to providing computing infrastructure. Artificial intelligence (AI).
The San Francisco-based company announced it has entered into a $50 million convertible loan agreement with institutional investors to begin acquiring graphics processing units (GPUs). Train an AI model.
The company also plans to rebrand itself as “NewBird AI” and eventually shift its focus to providing cloud computing capabilities and AI services, but did not provide additional details about those plans.
Allbirds has closed most of its physical stores in recent months as demand slumps and the company focuses on online partnerships. The company announced last month that it had sold its brands and footwear assets to American Exchange Group for $39 million.
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After selling its brand and footwear assets, Allbirds is pivoting away from shoes and moving to focus on AI as it rebrands to NewBird AI. (Victor J. Blue/Bloomberg via Getty Images)
“As a result of these transactions, the Allbirds brand and legacy will continue under American Exchange Group ownership for the benefit of all of our customers, investors as of the dividend record date will receive a special dividend, and investors who choose to continue holding NewBird AI stock will be invested in our growing AI computing infrastructure business,” the company said in a press release.
NewBird AI is loan agreement Get high-performance GPUs used to provide customers with dedicated access to AI computing power.
In the long term, NewBird AI hopes to provide customers with GPU-as-a-Service and AI-powered cloud solutions, including through the growth of its NeoCloud platform. at the same time, mergers and acquisitions.
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| ticker | safety | last | change | change % |
|---|---|---|---|---|
| bird | Allbirds Co., Ltd. | 10.91 | -6.08 |
-35.79% |
Allbirds stock price soars The stock price rose Wednesday after the announcement from Tuesday’s closing price of $2.49 per share to a recent high of $21.95 per share during Wednesday’s trading session.
The company’s stock pared some of Thursday’s gains to trade around $12.30 per share, down 27.5% on the day but up 379% over the past five days. Despite this rise, the stock price has fallen more than 97% over the past five years.
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GPUs are used for training artificial intelligence (AI) models. (St. Petersburg)
The company’s announcement explains that it sees opportunity in the AI space, stating that “the increasing development and adoption of AI is creating an unprecedented structural demand for specialized high-performance computing that the market is struggling to meet. Investing in data centers It is on the rise. ”
“At the same time, GPU procurement lead times for high-end hardware are increasing, data center vacancy rates in North America are at historic lows, and the entire market for computing capacity is already fully committed to be operational by mid-2026. The result is a market where enterprises, AI developers, and research organizations cannot secure the computing resources they need to build, train, and run AI at scale.”
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“NewBird AI is built to fill that gap. The company will first acquire high-performance, low-latency AI computing hardware and aim to provide access under long-term lease agreements to meet consumer demands that spot markets and hyperscalers cannot reliably service.”
Reuters contributed to this report.
