Allbirds Inc. (NASDAQ: BIRD) announced it has executed a $50 million convertible financing facility with an institutional investor, enabling the footwear company to pivot into AI compute infrastructure. The facility is expected to close during the second quarter of 2026.

The company plans to change its name to "NewBird AI" in connection with the business transformation. The conversion of the financing facility requires stockholder approval at a special meeting scheduled for May 18, 2026, for stockholders of record as of April 13, 2026.

The announcement follows Allbirds' previous disclosure of a definitive agreement to sell its brand and footwear assets to American Exchange Group. Subject to stockholder approval of the asset sale, Allbirds anticipates issuing a special dividend during the third quarter of 2026 to stockholders of record as of May 20, 2026.

NewBird AI plans to use initial capital from the facility to acquire high-performance GPU assets for customers requiring dedicated AI compute capacity. The company's stated long-term vision involves becoming a GPU-as-a-Service provider and AI-native cloud solutions company.

According to the press release, the company will initially focus on acquiring high-performance, low-latency AI compute hardware and providing access through long-term lease arrangements. The strategy targets enterprise demand that the company claims existing spot markets and hyperscalers cannot reliably service.

Chardan is serving as placement agent on the facility, while Holland & Hart LLP acts as legal counsel to Allbirds. The transactions remain subject to various closing conditions and stockholder approvals outlined in proxy materials filed with the Securities and Exchange Commission.