Allbirds (NASDAQ:BIRD) shares surged 70% on Wednesday after the company unveiled a $50 million convertible financing facility alongside plans to reposition its business toward artificial intelligence computing infrastructure.
The company said it has entered into a definitive agreement with an institutional investor for the funding, which is expected to close in the second quarter of 2026 and will support its transition into the AI compute sector.
As part of the strategic overhaul, Allbirds intends to rebrand itself as “NewBird AI.” The conversion of the financing facility will require shareholder approval at a special meeting scheduled for May 18, 2026, for investors on record as of April 13.
The announcement follows a previously disclosed agreement to sell its brand and footwear operations to American Exchange Group. Pending shareholder approval, the company expects to distribute a special dividend in the third quarter of 2026 to shareholders on record as of May 20.
NewBird AI plans to deploy the initial capital to acquire high-performance GPU assets, targeting customers that require dedicated AI computing capacity. Over the longer term, the company aims to evolve into a GPU-as-a-Service provider and a cloud platform focused on AI-native solutions.
According to the company, the initial phase will focus on securing high-performance, low-latency computing hardware and offering access through long-term leasing arrangements. The strategy is designed to address enterprise demand that it believes is not consistently met by existing spot markets or hyperscale providers.
Chardan is acting as placement agent for the financing, while Holland & Hart LLP is serving as legal advisor. The transaction remains subject to customary closing conditions and shareholder approvals detailed in filings with the Securities and Exchange Commission.