Key Background
Allbirds began as a footwear manufacturer whose wool sneakers surged in popularity with San Francisco’s tech workers and executives a decade ago. The company was valued at $4 billion after an IPO in November 2021, but sales began falling during the pandemic. In April, Allbirds announced an abrupt pivot—the once-popular shoe manufacturer would sell its entire footwear business to a brand manager and reconfigure itself as an “AI compute infrastructure” company called NewBird AI. The company’s stock surged after the announcement, before quickly tanking the next day and falling for weeks until Wednesday’s announcement.
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Further Reading
ForbesShoemaker Allbirds Suddenly Says It’s An AI Company—And Stock Jumps 800%By Zachary Folk