Allbirds, the San Francisco-based footwear brand once associated with Silicon Valley’s casual uniform, is preparing to leave behind its core business and reposition itself in the fast-growing market for artificial intelligence infrastructure.

The company has agreed to a US$50 million deal aimed at building capacity in high-performance computing, marking a decisive move away from shoes toward GPU-driven services. The transition follows an earlier announcement in March that Allbirds would sell its brand to American Exchange Group for US$39 million, effectively separating its identity from its original product line.

Known for its minimalist wool sneakers and a customer base that included public figures such as Barack Obama and actors Ben Affleck and Leonardo DiCaprio, Allbirds built early momentum after its founding in 2015. The company was launched by former football player Tim Brown and clean-technology entrepreneur Joey Zwillinger, gaining traction particularly within the tech community.

That early success proved difficult to sustain. The company’s stock has declined steadily since mid-2025, and its current market value remains far below levels seen when it went public in 2021.

The latest announcement briefly reversed that trend. Shares surged more than 580 percent following the news, reaching levels last seen in 2024. The gains proved short-lived, however, with the stock falling back roughly 35 percent a day later.

Allbirds plans to complete its transition in the second quarter of 2026, subject to shareholder approval at a special meeting scheduled for May 18. Upon completion, the company intends to rebrand as NewBird AI.

Initial efforts will focus on acquiring high-performance GPUs, which are in short supply globally, and offering dedicated computing capacity to businesses and developers working on artificial intelligence systems. Over time, the company says it aims to expand into a broader GPU-as-a-service model and develop AI-focused cloud solutions.

In filings with regulators, Allbirds pointed to rising demand for specialised computing power as a key factor behind the shift. The company cited increasing lead times for advanced hardware and limited availability in North American data centres, noting that much of the expected capacity through mid-2026 has already been committed.

The move places Allbirds among a growing number of companies redirecting resources toward AI-related services, as demand for computing infrastructure accelerates across industries.