Allbirds pivots from shoes to AI

In a move that sent its stock price soaring by over 600 percent, Allbirds Inc. has declared it is exiting the apparel industry to become a 'GPU-as-a-Service' provider.

The San Francisco-based firm, once valued at $4 billion for its sustainable wool sneakers, has struggled with profitability since its 2021 IPO. Under the new name NewBird AI, the company plans to build cloud solutions for the booming artificial intelligence sector.

While Wall Street reacted with a frenzy of buying, some analysts have questioned the viability of a shoemaker transitioning into complex semiconductor infrastructure.