Source: Radio New Zealand
Allbirds founder Tim Brown. (File photo) Supplied
The New Zealand founded but US based footwear company Allbirds is to make a surprising pivot from shoes into AI computing.
The Nasdaq listed company once valued at over (US)$4 billion announced this month it was selling its intellectual property and other assets to a private firm, American Exchange Group for (US)$39 million.
In a statement on Thursday, the company said it was now going to focus on AI under the name of NewBird AI.
The company also announced a deal to raise up to (US)$50 million in funding to carry out the new strategy.
It said it expected to use the money to acquire AI computing assets and serve customers needing dedicated access to AI computing services.
Shares in the company surged on the news, from around $3 a share to $18 giving the company a market value of around (US)$160 million.
Allbirds, known for its merino wool sneakers, was founded in 2015 by former All White Tim Brown and Joey Zwillinger, and listed on the Nasdaq in 2021.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
