Allbirds pivots to AI

Allbirds, once a darling of the sustainable footwear industry, is abandoning its wool sneakers to become a provider of AI compute infrastructure.

The company secured $50 million in funding to purchase AI servers and rent them out to other firms.

While the news caused a temporary frenzy in trading, some analysts have expressed skepticism about the company's ability to compete with established cloud giants.

The pivot is seen as a desperate attempt to revive the struggling brand, which has faced declining sales and a plummeting valuation in recent years.