Allbirds sold its shoe business for $39 million and is pivoting to AI cloud computing

Allbirds Rebrands as NewBird AI, Pivots from Shoes to GPU Cloud Computing

Allbirds, the sustainable footwear company that went public in 2021 at a $4 billion valuation, is rebranding as NewBird AI and pivoting to GPU-as-a-service cloud computing. In a surprising move, the company sold its shoe business to American Exchange Group for $39 million in late March 2026 and secured $50 million in convertible financing.

How it Got Here

Allbirds' decline has been steep and public. Revenue fell from $298 million in 2022 to $152 million in 2025, a roughly 50% drop over three years. The company lost $77 million in 2025. In February 2026, it closed all its full-priced retail stores in the United States. The stock also faced issues, trading below $1 for more than 30 consecutive days, which led to a reverse stock split to maintain its Nasdaq listing.

The Pivot

With the shoe business sold, Allbirds is positioning itself as a GPU-as-a-service provider, planning to acquire high-performance GPUs and lease them to enterprises and AI developers facing compute shortages. They envision becoming a "fully integrated GPU-as-a-Service and AI-native cloud solutions provider" through what they call a "neocloud platform."