Allbirds, the sustainable footwear maker once valued at $4 billion, has completed a dramatic pivot to artificial intelligence. The company announced Wednesday it is renaming to Smartbird and repositioning itself as "an AI infrastructure provider."
Alongside the rebrand, Smartbird appointed Nadia Carlsten as its new CEO, replacing Joe Vernachio who took the helm in March 2024. Carlsten previously led Amazon Web Services' quantum computing center and served as CEO at AI company DCAI. She will also join the company's board.
The market response was immediate and sharp. BIRD stock surged roughly 45% midday Wednesday and closed up 37%. Despite this rally, shares remain down 50% over the past year. The company had already sold off its footwear-related assets for nearly $40 million to fund the transition.
Smartbird's pivot marks a radical departure from its origins as a beloved direct-to-consumer shoe brand. The move reflects a broader trend of legacy companies reinventing themselves as AI plays, though the strategy carries significant risk. The company was once valued at $4 billion, but its current market cap is a fraction of that peak.
Investor enthusiasm for AI-adjacent plays may be driving the stock pop, but skeptics question whether a former shoemaker can successfully compete in the crowded AI infrastructure space. The company has not disclosed what specific AI products or services it will offer.