Allbirds Rebrands Again to Smartbird, Appoints New CEO
Quick Look
- Allbirds, which recently rebranded to NewBird AI, is changing its name again to Smartbird and appointing Nadia Carlsten as its new CEO, replacing Joe Vernachio.
- Carlsten has a background in quantum computing and AI infrastructure.
AI-generated summary
Why It Matters
Allbirds, founded in 2015 to make sustainable shoes, has undergone a significant pivot towards AI infrastructure after selling its footwear assets and closing U.S. stores.
Two months after its unexpected artificial intelligence rebrand, Allbirds is changing its name to Smartbird and appointing a new chief executive.
The shoemaker-turned-AI infrastructure firm on Wednesday named Nadia Carlsten as CEO and board member, replacing current CEO Joe Vernachio.
Carlsten previously led Amazon Web Services' quantum computing center and worked at the U.S. Department of Homeland Security. Most recently, she was CEO at DCAI, an AI infrastructure company that recently partnered with Nvidia and is home to a supercomputer known as Gefion.
Shares of BIRD soared 34% on Wednesday.
Allbirds surprised investors in April with plans to shift from making shoes to AI compute infrastructure and hardware. At the time, the company rebranded to NewBird AI and its market cap surged sevenfold.
A month earlier, the company sold its footwear assets to the brand management company American Exchange Group for $39 million. Allbirds also shuttered its U.S. full-priced stores in February.
Allbirds is among the latest crop of companies pivoting to AI in a bid to capitalize on the burgeoning tech boom set off by ChatGPT's debut in late 2022. A day after Allbirds' rebrand, social media platform provider Myseum shifted to AI.
Refocusing efforts on new tech trends isn't a new phenomenon on Wall Street. Several companies announced their own cryptocurrencies or pivoted to blockchain during the height of crypto mania.
AI infrastructure company CoreWeave , which went public last year, started in crypto mining before a successful pivot to AI.
Former professional soccer player Tim Brown and renewable resources expert Joey Zwillinger founded Allbirds in 2015, seeking to build sustainable shoes from natural materials. The company launched its debut shoe a year later and quickly transformed into a household name.
In 2021, Allbirds went public on the Nasdaq surging 90% in its market debut. The company also rapidly expanded its brick-and-mortar footprint.
Over the years, shares have slumped nearly 99% from a November 2021 high of $577.80 due to mounting competition and slowing trends.
What to Watch
AI outlook — possibilities, not facts
Smartbird will focus on AI infrastructure and hardware development.
Very likely · Medium term
Open Questions
- Will the AI pivot be successful long-term?
- What is the future of the Allbirds brand name?
- What are the specific AI infrastructure products/services?
