Allbirds plans transition to GPU service provider under new corporate name

Allbirds, once celebrated as the preferred shoemaker of Silicon Valley, announced a radical transformation on Wednesday, transitioning from sustainable footwear to artificial intelligence infrastructure.

Rebranding as NewBird AI, the company intends to operate as a GPU-as-a-service provider by purchasing powerful chips and selling off its original footwear assets.

This shift signals a significant departure from the brand's founding identity, as the Allbirds name itself is set to be sold to new ownership.

In a formal filing with the Securities and Exchange Commission, the firm revealed that stockholders will vote next month on proposals to revoke its status as a public benefit corporation.

This change would effectively remove environmental commitments currently written into its charter. "The anticipated Electronics Infrastructure Business would be less focused on the public benefit of environmental conservation," the company stated.

By abandoning its Delaware PBC status, NewBird AI will prioritise the interests of stockholders without the previous requirement to balance those gains against responsible and sustainable operations.

The transition is particularly noteworthy given the significant energy and water resources required to maintain AI data centres.

While the company admitted that eliminating its green status could "damage our reputation," the market responded with initial enthusiasm. Shares surged by 582 per cent by Wednesday's close, reversing a prolonged slump.

Allbirds was founded in 2015 with a central mission to reverse climate change through sustainable products, including the launch of a net-zero carbon shoe last year. Future projects will now focus exclusively on the burgeoning electronics infrastructure sector.