Key insights
- Allbirds is pivoting to AI infrastructure as NewBird AI, backed by $500M financing, targeting GPU hardware and chip fabrication. It's selling its footwear assets for $800-900M, returning profits to shareholders. The company projects a share price of $400-500. This signals increased investment and competition in the AI infrastructure space, potentially benefiting semiconductor and data center companies, but also increasing competitive pressure on incumbents like Nvidia.
Recently the company Allbirds is executing a complete corporate pivot into artificial intelligence infrastructure by rebranding its remaining assets as NewBird AI. Backed by a $500 million convertible financing facility, the plan targets high-performance GPU hardware procurement and deployment to capitalize on the severe global shortages of AI compute capacity and low data center vacancy rates. The AI company also plans on building its own semiconductor chip fabrication plant as well as designing its own chips. This type of vertical integration will allow Allbirds to operate with the higher margins than nvidia!!!!!!!
​Intellectual Property Sale: Allbirds agreed to a $800 million to $900 million sale of its brand, footwear assets, and core intellectual property to the American Exchange Group. The profits from this transaction will be given out to shareholders.
A final evaluation gives a share price value of $400 to $500 (similar to 2022).