Allbirds, the once-celebrated sneaker company, has completed a radical transformation, exiting the footwear market to become Smartbird, an AI infrastructure firm. This shift marks one of the most dramatic pivots seen during the AI boom, with the company shedding its original brand identity and workforce to embrace a technology-driven future.
The company officially changed its name to Smartbird and appointed Nadia Carlsten as its new CEO. Carlsten, who has never worn Allbirds shoes, brings experience from leading AI initiatives at the Danish Centre for AI Innovation and launching quantum computing services at Amazon Web Services. She replaces Joe Vernachio, who resigned from both the CEO role and the board. Smartbird retains the same NASDAQ ticker symbol, BIRD, despite the overhaul.
Smartbird’s transformation follows a steep decline in Allbirds’ consumer appeal and market value over recent years. After going public with a valuation near $4 billion, the company’s worth plunged to under $20 million. This prompted the decision to sell off the footwear brand and pivot toward competing in AI infrastructure alongside major players such as Amazon and CoreWeave. The announcement drew mixed reactions, with some critics calling the move “bizarre,” while Wall Street initially drove the stock price up significantly before it settled lower.
Carlsten described the shift as unconventional but not unprecedented in Silicon Valley, citing examples like Slack’s origins as a game and Twitter’s initial focus on podcasts before evolving into major platforms. She emphasized that Smartbird has a clear plan to establish itself in the AI infrastructure market, effectively distancing the company from its past identity as a footwear manufacturer.