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Allbirds, a former Wall Street darling fallen on hard times, looks to AI for its future

NEW YORK (AP) — Allbirds, the eco-friendly shoe brand that found its way onto the feet of tech CEOs and movie stars before falling on hard times, is pivoting to artificial intelligence.

On Wednesday the San Francisco-based company said it had signed a definitive agreement with an unnamed institutional investor for $50 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 rise of AI development and adoption has created unprecedented structural demand for specialized, 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 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 like Allbirds moving from shoes into AI infrastructure is not a very natural adjacency.”

It’s unclear how Allbirds will reinvent itself as a “GPU-as-a-service” business that rents out computing power to AI companies. That means selling access to a huge number of graphics processors, or other specialized AI computer chips designed by companies like Nvidia or AMD, that operate in big data centers typically run by cloud computing giants like Amazon or Oracle.

The business of running physical AI infrastructure “requires access to GPUs in a constrained market, long-term power agreements, advanced cooling strategies, and a credible operating model,” said Kleyman, CEO and co-founder of Apolo.

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 $39 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 $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 latest development marks a dramatic departure from when the company was founded in 2015 by former professional soccer player Tim Brown and renewable resources expert Joey Zwillinger. Its mission: to create footwear from natural material, not synthetics. A year later, Allbirds launched its iconic wool runner shoe. But the company overexpanded, like many dot.com brands that opened physical stores. And many consumers lost interest.

In February, the brand shuttered most of its remaining stores to focus on e-commerce, partnerships with stores and international distributorship. It still operates two outlet stores in the U.S. and two full-price stores in London.

Shares of Allbirds soared more than 600% on Wednesday’s news and were hovering nearly $18 in late afternoon trading. A few days ago, the stock was trading at $3. It once traded at $520 per share.

Kleyman said the stock market surge looks “more like initial excitement and speculative momentum tied to anything AI rather than validation of execution.”

Kleyman also noted that $50 million is not a lot to enter into an infrastructure-heavy market and added that it seems everybody wants to be an AI company.

“Some of those shifts are real and strategic,” he said. “Others feel more reactive. In this case, I think it’s fair to say it can come across as a bit desperate. The underlying business struggled, and AI presents a compelling narrative reset.”

The attempt at a pivot shows that the demand for AI computing power is real, “but so is the hype,” said Jim Piazza, who worked on computing infrastructure at social media giant Meta and now is the chief AI officer at IT services firm Ensono.

Piazza said building a real AI infrastructure business “takes deep capital, technical expertise and disciplined execution,” something that is already “crazy hard for tech-savvy companies” and will be “an impossible challenge” for someone outside of it.

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AP Technology reporter Matt O’Brien reported from Providence, Rhode Island.

McConnell says after weeks of speculation that hospitalization was due to a fall

By WTOP Staff
(CNN) — Republican Sen. Mitch McConnell of Kentucky on Sunday announced, after weeks of speculation, that he had a fall last month that landed him in the hospital.“My doctors have confirmed that I didn’t break any bones or suffer a concussion. I didn’t have a heart attack or a stroke. I don’t have any tumors or hemorrhages. But I was briefly unconscious and was taken to the hospital. While receiving excellent care over the past several weeks, I’ve also had to deal with a mild case of pneumonia,” he said in a statement.McConnell also provided a photo showing him smiling next to his wife, Elaine Chao. He appears to have a copy of Sunday’s Washington Post sports section on his lap.McConnell said he’s moved from a hospital to a rehabilitation center to continue regaining his strength. His doctors have run through “every test they can think of” to try to determine what caused the incident.The former Senate majority leader said he “won’t be able to return to the Senate floor to vote quite yet” but he’s “been working closely” with legislative staff in the meantime.The statement comes after weeks of questions over McConnell’s health, as aides for the 84-year-old were fiercely protective about releasing information on his condition. The lack of information sparked speculation and rumors online that his health had significantly deteriorated.McConnell, a childhood polio survivor, has faced a series of health issues in recent years, including multiple falls. In 2023, he froze midsentence during a news conference.Along with his own statement, McConnell included a note from the attending physician of Congress, who described the injuries after the fall at his Washington, DC, home as “minor.”“A comprehensive evaluation by a multidisciplinary team determined that he had no fractures, cardiac abnormalities, stroke, tumor, or hemorrhage. Early in his hospitalization, he developed pneumonia, which responded rapidly to antibiotic treatment,” the physician said, adding that the senator has “focused on physical therapy and strategies to reduce his risk of future falls.”Sunday’s statement finally provides an answer to the circumstances of McConnell’s hospitalization on June 14, which has been shrouded in mystery.In his statement, McConnell indirectly addressed why it took so long to share what sent him to the hospital.“You all know how folks of my generation often hesitate to share the vulnerability that comes with growing older. Even in the public eye, I feel that same instinct — I can’t help it,” he said, addressing his “fellow Kentuckians.”McConnell said he has work to do before retiring at the end of his term.“You’re right to expect your representatives to work hard for you. And part of my decision to retire at the end of my term this coming January was being honest about the demands of Senate work. But I still have unfinished business to complete on your behalf, and I have every intention of finishing the job you elected me to do,” he said.When the incident occurred, his spokesperson said only that McConnell was “admitted to the hospital” and was “receiving excellent care.”Video obtained exclusively by CNN last week showed emergency responders taking McConnell to an ambulance on a stretcher after being called to his home.Weeks into McConnell’s absence, an EMS recording published by an independent journalist indicated emergency responders were called to his home for an “unconscious” person for a “cardiac arrest,” and a paramedic is heard saying, “CPR in progress.”After the audio was published, McConnell’s spokesman released another statement saying the Kentucky Republican remained hospitalized as “he continues his recovery” without providing specifics.Some high-profile Republicans, including Senate Majority Leader John Thune, issued statements last week saying they recently spoke with McConnell. CNN senior political commentator Scott Jennings told CNN’s Kasie Hunt on “The Arena” that he talked with McConnell on the phone Tuesday and that his “voice sounded strong.”“I’ve had more than my share of experience with physical vulnerabilities,” McConnell said in his statement Sunday.In March 2023, he suffered a concussion and broken ribs after a fall. Months later, he froze midsentence during a news conference. CNN later reported he had suffered two other falls earlier that year.The attending physician noted that “McConnell has experienced several falls throughout the year that have been attributed to his post-polio condition.”Adults who had polio during childhood can develop post-polio syndrome even decades later. Symptoms include gradual weakening of muscles, fatigue, and muscle and joint paint. There is no specific treatment for post-polio syndrome, but patients may receive physical, occupational and speech therapy, medications for certain symptoms or use mobility aids such as walkers and braces.It’s not clear how common post-polio syndrome is, but some studies estimate 25% to 40% of polio survivors experience it, according to the US Centers for Disease Control and Prevention.McConnell’s statement came the same day it was announced that his colleague Lindsey Graham, a longtime Republican senator from South Carolina, died following a sudden illness. He was 71.This story has been updated with additional information.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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