India, April 15 -- Shares of Allbirds Inc skyrocketed more than 435% on Wednesday after the struggling footwear brand unveiled a dramatic shift in strategy - pivoting to AI computing infrastructure. The San Francisco-based company said it had secured a $50 million convertible financing facility from an institutional investor. The capital will be used to acquire graphics processing units (GPUs) and build out a new business focused on cloud computing capacity and AI services.

As part of the overhaul, Allbirds plans to rebrand itself as 'NewBird AI', signaling a full departure from its footwear business.

The pivot comes just days before the company was expected to cease operations in its existing form. Allbirds had already taken steps to e...