Struggling shoe company Allbirds pivots to AI infrastructure business after $4 billion IPO failure, rebranding as NewBird AI with $50 million in new funding.

Allbirds, once successful with its Wool Runner shoes, failed to turn a profit after its 2021 IPO and saw sales drop nearly 50% between 2022 and 2025

The company sold its name and assets to American Exchange for $39 million and closed all remaining stores

CEO Joe Vernachio announced plans to raise $50 million from an unnamed investor to transform the shell company into NewBird AI

NewBird AI will operate as a GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider