Allbirds, the shoe company that sold for $39M last week following a collapse from its $4B+ 2021 valuation, announced plans to pivot into AI compute services. The stock surged 350% on the news.
The San Francisco-based footwear maker, once a darling of sustainable fashion investors, has dramatically shifted strategy following its acquisition at a fraction of its former worth. The company's pivot to artificial intelligence infrastructure marks a stark departure from its core wool trainer business.
Allbirds' stock price jumped 350% following the announcement, reflecting investor enthusiasm for AI-related pivots. The move comes as the broader market continues to chase AI-adjacent opportunities.
The company's valuation decline from over $4 billion to $39 million represents one of startup investing's steepest falls in recent memory. Allbirds had gone public via SPAC in November 2021 at the height of the sustainable fashion investment boom.
Details on Allbirds' AI compute strategy remain limited, though the company plans to leverage existing infrastructure for the new business line.
Bessemer Venture Partners announced $5.75 billion in new funding, with $4 billion allocated to growth-stage investments and $1.75 billion for early-stage companies. The capital deployment signals the firm's strategic pivot toward later-stage startups.
Customer messaging platform Bird has secured $450 million in debt financing led by JPMorgan Chase. The capital will be used to return cash to investors and employees.
Satellite startup Hubble Network closed a $200 million funding round, achieving unicorn status as it builds a space-based network for global Bluetooth connectivity.