Lead

Allbirds, the San Francisco-based sustainable shoe brand once valued at more than $4 billion, has been sold for just $39 million (£29.6 million) after global demand for its wool-based footwear failed to materialize, according to The Guardian. The company, listed on the US stock market in 2021, has seen its shares tumble by more than 99%, leaving it valued at just over $20 million.

Coverage Comparison

Two reports from The Guardian cover the same story from different angles. The first focuses on the sale itself, describing the company's dramatic decline from a $4 billion valuation to a $39 million acquisition. The second report highlights a separate development: Allbirds' announcement that it is pivoting to artificial intelligence, rebranding as "NewBird AI," which sent its stock price up 582% in a single day.

Key Claims

  • Company Founding: Allbirds was co-founded by former New Zealand footballer Tim Brown and engineer and renewables expert Joey Zwillinger, according to The Guardian.
  • Initial Success: The company launched on the Nasdaq in 2021 with a $4 billion valuation and eventually surpassed $1 billion in sales. Early product success included selling more than 1 million pairs of original merino wool trainers in the first two years after its official launch in March 2016.
  • Decline: The company slipped into losses as it opened stores worldwide and competition intensified from eco-friendly rivals such as Veja and Swiss sports brand On.
  • Recent Financials: The takeover follows a sharp fall in sales in the third quarter of 2025, with sales down 23% year-on-year to $33 million, alongside a $20.3 million loss.
  • Store Closures: In January, Allbirds announced the closure of all but two of its remaining 20 US stores, while keeping its two UK shops in London open.
  • AI Pivot: According to a company statement reported by The Guardian, Allbirds announced it would pivot to artificial intelligence, rebranding as 'NewBird AI' and will shift from a public benefit corporation to a conventional corporation, stating that the new company "would be less focused on the public benefit of environmental conservation." The company has secured $50 million in funding from an unnamed investor and will focus on acquiring graphics processing units (GPUs) to support AI compute. The company said the rise of AI has created "unprecedented structural demand" for high-performance compute.

Perspectives

Financial Decline and Sale

Two of the reports emphasize the financial struggles leading to the sale. They cover the company's decline from a $4 billion valuation to a $39 million sale to American Exchange Group (owner of brands like Ed Hardy and Born), the 99% share decline, and the closure of stores. This perspective treats the sale as the end of a cautionary tale about hype and competition.

AI Pivot and Stock Surge

The other report focuses on the surprising pivot to AI, describing it as a "bizarre" and possibly risky move. It notes the stock surge of 582% and the funding, but is skeptical about the long-term viability, quoting the company's own explanation of "unprecedented demand" for AI compute while highlighting the potential for a "meme stock" phenomenon.

Analysis

These two angles present a stark contrast: the sale for a fraction of the company's former worth versus the glow of AI hype. The full picture remains unclear. As reported by The Guardian, Allbirds has gone from a high flyer to a "dead parrot" according to Neil Saunders of GlobalData, who said its early success "was driven by Silicon Valley hype," more than deep popularity with consumers.

Conclusion

Author's note: This article synthesizes information from media reports. The sale price, financial data, and details about the AI pivot are as reported by The Guardian. While the financial decline is well documented, the AI pivot rests on single-source reporting and remains uncertain.