Allbirds revealed that it is pivoting from sustainable shoes to artificial intelligence.

The enterprise, valued at around $4 billion at its peak, sold its intellectual property and other assets two weeks ago for $39 million.

The shoe corporation had a economy cap of about $21 million Tuesday, which climbed to $148 million on Wednesday.

Allbirds made a surprising announcement Wednesday that it is pivoting from shoes to artificial intelligence.

The move boosted shares of the miniscule marketplace cap corporation — it was valued at about $21 million at Tuesday’s close — by 582%. The shares, which were under $3 a day ago, jumped to about $17.

The firm stated that it’s pivoting its business to AI compute infrastructure in a release posted to its investor relations page. This also touches on aspects of wall street.

The corporation, which revealed a deal to raise up to , according to the release will be called NewBird AI$50 million in funding, expected to close in the second quarter of 2026.

“The Enterprise will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service,” the corporation stated in the announcement.

Allbirds, once a Wall Street darling valued north of $4 billion, proclaimed a deal with American Exchange Group to trade its intellectual property and other assets for $39 million last month.

American Exchange Group is a brand management firm focused on the accessory space. it will continue to liquidate products under the Allbirds brand.

Allbirds closed all its U.S. full, according to the release-priced stores in February.

The corporation is the latest firm looking to cash in on the AI boom, which has ignited a fever on Wall Street since OpenAI launched its ChatGPT chatbot in 2022.

AI infrastructure is a notoriously expensive and complex business, but it can be lucrative. Nvidia, which dominates the marketplace for graphics processing units, has ballooned into the most valuable organization in the earth, with a economy cap that’s approaching $5 trillion.

There’s a history in the stock industry of troubled companies pivoting to the hot industry of the moment To garner interest. During the bitcoin boom, several companies proclaimed a blockchain tie-in or converted outright to a cryptocurrency organization to reignite interest in their stock.

Allbirds was founded in 2015 by former professional soccer player Tim Brown and renewable resources expert Joey Zwillinger to create a fresh category of shoes that relied on natural materials, not plastics and other petroleum products.

In 2016, Allbirds introduced its debut shoe, made with merino wool, and became an instant success, particularly among “tech bros” who were drawn to the brand’s comfort and sustainability.

It embarked on an ambitious store opening plan and went public in 2021, but soon saw its business begin to slow as trends changed, competitors moved in and customer acquisition costs rose.

Between 2022 and 2025, sales plummeted nearly 50% — falling from $298 million to $152 million.

— CNBC’s Ashley Capoot contributed to this report.