Allbirds, the eco-friendly shoe brand co-founded by an ex-All White which found its way onto the feet of tech CEOs and movie stars before falling on hard times, is pivoting to artificial intelligence. The San Francisco-based company said it had signed a definitive agreement with an unnamed institutional investor for US$50 million (NZ$84.5 million) in financing to shift its business to AI infrastructure. It will also have a new name: NewBird AI. It plans to use the proceeds to purchase graphics processing units, known as GPUs. The transaction is expected to close during the second quarter of this year. The announcement comes more than two weeks after Allbirds sold its intellectual property and certain other assets and liabilities to American Exchange Group, a leader in accessories design, licensing and manufacturing, for US$39 million (NZ$67.8 million). The company owns such retail brands as Aerosoles, White Mountain, Jonathan Adler and Ed Hardy. That's a dramatic fall from the Allbirds' peak in valuation at US$4 billion in late 2021. The company had said that it would not be issuing its quarterly earnings report that was set for March 31. “The rise of AI development and adoption has created unprecedented structural demand for specialised, high-performance compute that the market is struggling to meet,” the company said in the release. “NewBird AI is being built to help close that gap.” The sustainable footwear brand was founded by ex-All White Tim Brown, and its products – marketed as easy-to-wear wool shoes – were worn by the likes of former US President Barack Obama, Hollywood star Leonardo DiCaprio, and Silicon Valley executives. The drastic change of direction has some industry watchers scratching their heads. “On the surface, it’s a strange pivot,” said AI infrastructure expert Bill Kleyman. “I’ve been in this industry a while, and a company