Allbirds, the sustainable footwear company known for its wool sneakers, is making an unexpected pivot to artificial intelligence after selling its core business for $39 million last month. According to sources familiar with the matter, the company will rebrand as NewBird AI and invest heavily in advanced computing infrastructure.
The move comes as Allbirds faced declining sales in its direct-to-consumer shoe business amid increased competition. Analysts note this follows a broader trend of consumer brands attempting AI reinventions, though few have succeeded at such a radical transformation.
“This is either visionary or desperate,” said a retail analyst at Bernstein who requested anonymity due to client relationships. “The $39 million sale price suggests investors saw limited runway for the original business model.”
Company filings show Allbirds retained rights to its brand name and intellectual property in the sale. Sources indicate the new entity will focus on AI-powered supply chain optimization and biometric footwear design initially.
The announcement has drawn skepticism from industry watchers. While some see potential in applying AI to sustainable manufacturing, others question whether the company has retained sufficient technical talent for such a pivot.