Allbirds has secured a $50 million (€46 million) convertible financing facility as it prepares to exit the footwear sector and pivot towards AI infrastructure.

The funding, expected to close in the second quarter of 2026, will support a shift towards a GPU-as-a-Service and AI-native cloud model, with the company planning to rename itself “NewBird AI”.

This follows an earlier agreement to sell the Allbirds brand and footwear assets to American Exchange Group, which will continue operating the brand.

Both the financing and asset sale are subject to shareholder approval at a meeting scheduled for May 18, 2026. If approved, the company expects to issue a special dividend in the third quarter of 2026.

Allbirds said the new strategy will focus on acquiring high-performance GPU assets to address growing demand for AI computing capacity.