The US apparel brand Allbirds initially garnered widespread acclaim for its iconic Wool Runner shoes. However, since its initial public offering (IPO) in 2021, the company has struggled to achieve profitability. Between 2022 and 2025, its sales experienced a significant decline, nearly halving over that period. Recently, Allbirds announced plans to close stores and sell its brand and assets for $39 million. In a bid to engineer a turnaround, the company has outlined a strategy to raise $50 million from undisclosed investors and pivot into the burgeoning 'GPU-as-a-Service' sector. It has launched an AI-native cloud platform named NewBird AI, aiming to address the growing demand in the AI computing power market.

Nevertheless, a professor from the Wharton School has voiced skepticism about Allbirds' move. The professor contends that this is not a genuine business transformation but rather an attempt to capitalize on its status as a publicly traded company to raise funds by aligning with trendy concepts. The professor even went as far as to suggest that a footwear company transitioning into an AI firm is indicative of a market bubble. Meanwhile, Allbirds' stock price experienced a remarkable surge during intraday trading, climbing by as much as 721%, and is now stabilizing at around $20.