Shares in the footwear brand Allbirds, once popular with figures such as actor Ben Affleck and former US President Barack Obama, surged on Wednesday after the company announced a major shift into artificial intelligence (AI).
The San Francisco-based firm said it has agreed a $50 million (£37 million) deal to transform itself into an “AI compute infrastructure” business and will rebrand as NewBird AI.
Following the announcement, its share price jumped by more than 580%, although the company’s valuation remains over 90% lower than its peak when it listed in 2021.
The brand, known for its eco-friendly trainers popular in Silicon Valley, has struggled in recent years with declining performance. Under its new direction, the company plans to purchase advanced graphics processing units (GPUs) used for AI computing.
It says it has identified a “gap in the market” caused by strong demand for computing power that has outpaced supply.
In the long term, the company aims to offer on-demand GPU access and cloud-based services tailored for AI workloads.
Tesla submits plans for a vehicle servicing facility
The electric vehicle company, owned by billionaire Elon Musk, has lodged an application with Reading Borough Council for a site that would include a service centre, bodyshop, and a small showroom.
The proposed location is the newly completed Reading Logistics Park, near the town’s International Business Park, where Tesla plans to occupy an existing facility.
If approved, the site would support servicing, maintenance, and general repair work for Tesla vehicles.
According to a document by ELG Planning, the company intends to use the space as a car servicing centre and bodyshop, along with a vehicle delivery hub and an ancillary showroom.
The showroom would mainly serve existing Tesla customers, allowing them to view new models while their vehicles are being serviced.
Allbirds shares surge 580% after shifting focus from footwear to artificial intelligence
