Allbirds rebrands as Smartbird, names Nvidia-linked AI executive as CEO after AI pivot

What happens when a struggling shoe company decides it wants to become an AI infrastructure business?

Investors are about to find out.

Just two months after abandoning its footwear identity in favor of artificial intelligence, Allbirds announced Wednesday that it is changing its name to Smartbird and appointing AI industry veteran Nadia Carlsten as chief executive officer and board member. Carlsten succeeds current CEO Joe Vernachio as the company continues one of the most unusual corporate transformations of the AI era.

Carlsten most recently served as CEO of the Danish Center for AI Innovation, an AI infrastructure organization partnered with Nvidia and home to Gefion, one of Europe’s most advanced AI supercomputers.

Investors welcomed the move. Shares of BIRD surged 34% on Wednesday following the announcement, CNBC reported.

The leadership change marks the latest step in a remarkable shift that has turned Allbirds from a sneaker brand into an AI infrastructure company in a matter of months.

Back in April, the company surprised Wall Street by unveiling plans to leave footwear behind and focus on AI compute infrastructure and hardware. The market responded immediately. Following the announcement, the company, then operating under the name NewBird AI, saw its market value jump roughly sevenfold as investors rushed into AI-related stocks.

From Sneakers to Supercomputers: Allbirds Becomes Smartbird and Names New CEO

The pivot came shortly after Allbirds sold its footwear assets to brand management firm American Exchange Group for $39 million, effectively closing the chapter on the business that made the company a household name.

The company’s new direction reflects a broader trend playing out across public markets. Since OpenAI’s ChatGPT sparked an AI investment boom in late 2022, a growing number of companies have repositioned themselves around artificial intelligence in hopes of capturing investor attention and new growth opportunities.

Some of those transitions have been dramatic. Social media platform provider Myseum announced its own AI pivot a day after Allbirds revealed its rebranding plans. Earlier market cycles produced similar behavior, with companies rushing to attach themselves to blockchain and cryptocurrency during the peak of the crypto boom.

Few examples have been cited more often than AI infrastructure company CoreWeave. Before becoming one of the most closely watched AI firms in the market, CoreWeave operated as a cryptocurrency mining business. Its move into AI compute helped transform the company into a major supplier of GPU infrastructure during the generative AI boom.

Smartbird is now attempting a similar reinvention.

The company’s challenge goes beyond adopting a new name or hiring AI leadership. It must convince customers, investors, and partners that a company once known for wool sneakers can compete in one of the most capital-intensive sectors in technology.

Carlsten’s appointment appears aimed at strengthening that case. Her experience running AI infrastructure operations and working closely with Nvidia-backed initiatives gives Smartbird a leader with direct exposure to the systems and partnerships that have become central to the AI race.

Whether that will be enough to turn a former footwear brand into a credible AI infrastructure player remains an open question. For now, investors appear willing to give Smartbird the benefit of the doubt.