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If you know the name Allbirds, it’s probably for the company’s longstanding stated commitment to “sustainable shoes and apparel.” Going forward, though, the corporate entity wants to be known for its “long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider.”

In a news release Wednesday morning, Allbirds announced that it has secured a $50 million convertible finance facility to help power this unexpected “pivot … to AI compute infrastructure.” If all goes to plan, the company will soon be known as NewBird AI, by which point it will presumably change the image of a spandex-clad hiker that still sits atop its News Release page.

Just weeks ago, Allbirds announced the $39 million sale of the “Allbirds brand and footwear assets” to American Exchange Group, owner of Aerosoles, Ecko Unlimited, and other fashion brands. Today’s AI pivot announcement certainly casts that sale in a new light. But Allbirds also announced a new line of colorful Canvas Cruiser shoes just last week, so it’s unclear how much long-term planning went into this new AI-related direction.

In an SEC filing accompanying the announcement, Allbirds notes that it is still “investigating potential opportunities in the computing infrastructure market, including the acquisition and monetization of graphics processing units, related high-performance computing infrastructure capable to support high workloads… and other related assets.” That kind of “we’re looking into it” phrasing certainly suggests a panicked move into the hot investment sector of the moment more than a carefully considered plan to really differentiate itself in that market.

While Allbirds investors still need to officially approve the company’s new direction at a coming meeting, they seem excited about the move so far. As of this writing, Allbirds stock has jumped over 400 percent to about $13 in morning trading, surpassing its trailing 12-month highs. But those increases follow years of massive losses since the company’s late 2021 IPO, when the pandemic-era darling saw $500 stock prices and a $4.1 billion valuation.

Stockholders will also need to approve a corporate charter amendment to “remove references to the Company being operated for the environmental conservation public benefit,” according to SEC filings.

First as tragedy, then as farce

If the sudden Allbirds pivot sounds familiar, it might be because it recalls the days when the Long Island Iced Tea Corporation changed its name to Long Blockchain amid the 2017 mania for everything crypto-related. That company’s stock more than tripled in the wake of that frenzied move, though the SEC soon halted trading in the company after those loftily announced blockchain plans failed to materialize in any real way.

GameStop’s famously meme-worthy stock also saw a brief jump in 2022 when it teased plans for an NFT marketplace and crypto wallet. By the summer of 2023, though, the company was already winding down its crypto marketplace after expected NFT-based revenues failed to materialize.

It’s easy to see similar signs of a speculative bubble in Allbirds’ attempted AI pivot today. Keep in mind, though, that Bitcoin prices are currently roughly five times higher than they were when “Long Island Blockchain” was announced at the end of 2017 (amid much volatility in the interim). Is pouring investor money into the 2026 GPU market a better move than trying to revive a cratering fashion brand? We’ll check back in… 2035 or so.