Struggling shoemaker and apparel brand Albird pivots to AI data centers, stock jumps 580% in a single day — sells core business and leveraging $50 million in financing to become a GPU-as-a-Service and AI cloud solutions provider

Allbirds, a struggling apparel and footwear brand, has pivoted to AI data centers after selling its core business, resulting in a 580% stock jump in a single day. The company secured $50 million in financing to transition into a GPU-as-a-Service and AI cloud solutions provider under the new name NewBird AI. Despite concerns about an AI bubble, Allbirds aims to capitalize on the growing demand for AI infrastructure. While lacking a detailed plan for its data center build-out, the company's stock price surged significantly following the announcement, marking a drastic turnaround from its previous challenges in the retail sector.