Sustainable footwear brand Allbirds sent many people on their heels with an announcement that it plans to transition away from footwear to focus on artificial intelligence, rebranding itself as NewBird AI.
Sherwood reported that stock shares rose rapidly after the company's announcement. Ahead of the pivot, Allbirds entered an agreement to sell its brand and footwear assets to American Exchange Group for $39 million.
Founded in 2015, Allbirds quickly gained popularity for its footwear made from natural materials, including responsibly sourced wool, tree fiber, and sugarcane. The company distinguished itself by committing to not only profit but also to impactful practices that resonate beyond retail.
Since its founding, Allbirds has held B Corp certification, which sets a high standard for businesses focused on benefiting both people and the environment while using profits for a greater purpose.
Given this commitment, fans and the financial world were surprised by the decision to transition away from sustainable footwear to focus on AI development — an industry that raises substantial environmental and societal concerns.
"The rise of AI development and adoption has created substantial structural demand for specialized, high-performance computing that the market is struggling to address," the company stated in its press release.
The company further pointed to growing investment in data centers. However, as investment in data centers has grown, so have concerns and public opposition.
This rebranding will also affect its engagement in environmental philanthropy. Sherwood reported that in its SEC filing, the company added that it will ask stockholders to approve a proposal to remove "references to the company being operated for the environmental conservation public benefit."
The news also drew considerable attention online.
"Allbirds, the shoe brand, now says it's an AI compute company," Tracy Alloway (@tracyalloway) wrote in a post to the social platform X alongside a snippet of the announcement.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
|
Which of these savings plans for rooftop solar panels would be most appealing for you?
Click your choice to see results and earn rewards to spend on home upgrades. |
Save $1,000 this year 💸 "Will the computers be going in the shoes?" a user jokingly commented.
"Is this satire?" another asked.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
Cool Picks
