Allbirds, the shoe company of choice for upper-class millennials, has announced its shift towards artificial intelligence. In another surprising company shift toward artificial intelligence, the shoe brand’s stock rose after the announcement. But will it continue to sell shoes, or will the company abandon its original product completely?
Back in 2019, at the German technology conference “Bits & Pretzels,” Allbirds co-founder Joey Zwillinger He talked about the company’s purpose and primary mission, according to Gizmodo.
“We realized there was a huge opportunity to take what the shoe industry does – which is make 20 billion pairs of shoes every year – without thinking too much about the environment, and use that as a platform to launch something special,” he explained. “I think the thing that made us successful early on, and I’m absolutely convinced, is the clarity of message and the uniqueness that we bring to consumers.”
Zwillinger added that they were “at the front end of a multi-decade trend where brands have to stand for something more than just making money, and if they don’t do that, there’s no real way they’ll actually thrive and survive on the global stage.”
Here’s what we know about Allbirds’ shift to artificial intelligence.
Is Allbirds an AI company now?
According to its press release, Allbirds acknowledged that its sale to American Exchange Group “will enable the company to transform its business into AI computing infrastructure.”
“Following its prior announcement that it has entered into a definitive agreement to sell the Allbirds brand and footwear assets to American Exchange Group, which intends to continue to build on the Allbirds legacy and offer attractive products to Allbirds customers (the ‘Asset Sale’), Allbirds, Inc. (Nasdaq: BIRD) (the ‘Company’) today announced the execution of a definitive agreement with an institutional investor to acquire a $50 million convertible financing facility (the ‘Company’),” the press release reads in part.
It will now be called “NewBird AI,” Allbirds added.
Does Allbirds still sell shoes?
Technically, Allbirds will still be sold as shoes, just not in the same company. Now called NewBird AI, the company’s official sale of its Allbirds brand to American Exchange Group will allow it to continue producing and selling shoes.
How did Allbirds’ AI announcement impact its stock?
After AI company Allbirds’ announcement, its shares jumped between 400 and 600 percent in one day, according to multiple outlets. However, shares soon fell 25 to 30 percent from their peak.
