BroadChain has learned that on April 16, MarketWatch reported that Allbirds—once famous for its "viral sneakers"—has announced a strategic shift into AI infrastructure. The company has rebranded as NewBird AI, positioning itself as a competitor to CoreWeave in GPU computing capacity. Following the announcement, its stock price soared nearly 600%.
However, several industry insiders have raised concerns about this move. Matt Domo, CEO of FifthVantage, suggested that Allbirds' pivot to AI looks more like a tactic to revive its lagging stock price, cautioning investors to be wary of "AI-washing"—where companies overstate or even fabricate their AI capabilities for marketing hype. He noted that aggressive corporate rebranding to chase technological trends is nothing new, drawing parallels to the rush of companies trying to capitalize on the blockchain wave in late 2017 and early 2018.
Jason Schloetzer, an associate professor at Georgetown University's McDonough School of Business, pointed out that the company's initial $50 million funding round "pales in comparison to the actual investment needed to become a credible provider of such services." On a more optimistic note, however, he added that the influx of new players into AI may also signal the market's "enduring enthusiasm" for growth in the sector.
Jay Goldberg, an analyst at Seaport Research, argued that it is difficult to imagine a company like Allbirds—a relative newcomer to the field—delivering truly competitive products or services in this space.