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Artificial intelligence is changing the battlefield
Artificial intelligence (AI) is emerging as a critical element in the conflict between the United States, Israel, and Iran.
SAN FRANCISCO - Shares of Allbirds – the once highflying maker of wool sneakers that helped define a generation of Silicon Valley style – surged more than 600% in early trading on Wednesday after the company announced a dramatic shift away from its environmental roots and into the booming artificial intelligence sector.
The company said it plans to rename itself "NewBird AI," reemerging as a new entity with a focus on "AI compute infrastructure."
The move signals a sharp break from its identity as a sustainability-focused retailer.
Allbirds stock soars
What they're saying:
In a statement, executives pointed to intensifying global demand for high-performance computing resources used to train and operate artificial intelligence systems — a market increasingly constrained by limited supply.
Sign on facade at shoe company Allbirds, Walnut Creek, California, August 25, 2025. (Credit: Smith Collection/Gado/Getty Images)
"The rise of AI development and adoption has created unprecedented structural demand for specialized, high-performance compute that the market is struggling to meet, adding, "NewBird AI is being built to help close that gap. The Company 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."
Allbirds rebrands as ‘NewBird AI'
Big picture view:
Founded in 2015, Allbirds became synonymous with a wave of venture-backed consumer brands that sought to upend traditional retail by selling directly to customers online while emphasizing design and brand storytelling.
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Its signature wool sneakers, favored by tech workers and investors alike, were marketed as environmentally friendly alternatives to conventional footwear, helping the company cultivate a loyal following among younger, sustainability-minded consumers.
The Source: The information for this story was provided by Allbirds. This story was reported from Los Angeles.