The CEO of Allbirds' new AI biz has a plan, but no team

The world of tech, especially artificial intelligence, is known for its rapid shifts and unexpected turns. Few recent developments highlight this better than the dramatic transformation of Allbirds, once synonymous with sustainable wool sneakers, into a dedicated AI infrastructure company. While initial reports might have hinted at its co-founder, Joey Zwillinger, spearheading a new AI venture, the reality is a fascinating story of a company's complete overhaul under new leadership.

Allbirds, the San Francisco-based brand that gained popularity for its eco-friendly footwear, has officially shed its shoe business and rebranded to "Smartbird," firmly planting its flag in the competitive AI compute infrastructure market. This bold pivot, backed by significant financing and a new CEO, marks a complete departure from its origins and signals a deep commitment to capitalizing on the surging demand for AI computing power.

From Sustainable Footwear to AI Infrastructure: The Allbirds Transformation

Founded in 2015 by Tim Brown and Joey Zwillinger, Allbirds quickly carved out a niche in the footwear industry with its focus on natural materials and sustainable practices. The company went public in 2021, reaching a valuation of $4 billion.

However, like many direct-to-consumer brands, Allbirds faced mounting challenges, including declining sales and intense competition, leading to a significant drop in its market value.

In a series of strategic moves beginning in early 2026, the company started to dismantle its footwear operations. In March, Allbirds sold its intellectual property and certain assets to the American Exchange Group for $39 million. This was followed by the closure of most of its U.S. full-priced stores.

The most significant announcement came in April 2026, when the company revealed its plans to pivot entirely to AI infrastructure, initially rebranding as "NewBird AI." This move was driven by the recognition of "unprecedented structural demand for specialized, high-performance computers that the market is struggling to meet" in the rapidly expanding AI sector.

Just recently, in June 2026, the transformation was finalized with another rebranding to "Smartbird" and the appointment of a new chief executive. This completes the company's dramatic reversal, shifting from a consumer goods company focused on physical products to a technology firm dedicated to providing essential AI computing resources.

The Brains Behind the Shift (and the Former Co-Founder's New Path)

It's important to clarify the roles of key individuals in this major pivot. While the original feed item might have suggested Allbirds' co-founder Joey Zwillinger was launching a new AI business, the facts indicate a different scenario. Joey Zwillinger, who co-founded Allbirds and served as its CEO through its 2021 IPO, stepped down from his leadership role in March 2024. This was two years before Allbirds officially announced its pivot to AI.

After leaving Allbirds, Zwillinger embarked on a different entrepreneurial journey. In December 2025, he launched Biologica, a women's hormonal health company, with his wife Liz Zwillinger. Biologica secured a $7 million seed round and focuses on developing hormonal supplements tailored to different life stages for women. This venture is distinctly separate from the AI pivot of the company he previously co-led.

The leadership guiding Smartbird's AI transformation is now in new hands. Nadia Carlsten has been appointed as the new President and CEO of Smartbird. Carlsten brings over a decade of experience in the AI market, having previously led Amazon Web Services' quantum computing center and served as CEO of DCAI, an AI infrastructure company that recently partnered with Nvidia. Her appointment signals a clear intent to bring specialized expertise to the company's new direction.

The AI Vision: GPU-as-a-Service

Smartbird's new mission is to become a "GPU-as-a-service" and AI-native cloud solutions provider. This business model involves renting out access to high-performance Graphics Processing Units (GPUs) – the specialized computer chips designed by companies like Nvidia and AMD – which are crucial for training and running complex AI systems.

The demand for these GPUs has skyrocketed with the rapid advancements in AI development, creating a bottleneck in the market. Lead times for high-end hardware are increasing, and data center vacancy rates are at historic lows. Smartbird aims to help close this gap by acquiring and offering access to these powerful computing resources.

To fund this ambitious pivot, Smartbird initially secured $50 million in financing from an unnamed institutional investor in April 2026. This funding was designated for purchasing GPU assets. In a more recent development in June 2026, the company announced it had increased its financing to $100 million, further bolstering its capacity to execute its AI infrastructure strategy.

Industry Reactions and Challenges

The dramatic pivot has certainly garnered attention, with some industry watchers expressing a degree of skepticism. AI infrastructure expert Bill Kleyman, for instance, noted the unusual nature of a shoe company transitioning into AI infrastructure, calling it "not a very natural adjacency." He also pointed out that while $50 million (the initial funding) is substantial, it might not be a "lot" to enter such an infrastructure-heavy and competitive market, especially one dominated by cloud computing giants.

The announcement of the AI pivot initially sent Allbirds' shares soaring, with reports of surges over 400% and even 580% in April. However, these surges were often short-lived, with stock prices fluctuating, suggesting that the market reaction was largely driven by speculative momentum tied to anything AI-related rather than immediate validation of execution.

Building a successful GPU-as-a-service business requires not just capital, but also access to GPUs in a constrained market, long-term power agreements, advanced cooling strategies, and a credible operating model – all significant hurdles for any new entrant, let alone a company transitioning from a completely different sector.

What's Next for Smartbird AI

With Nadia Carlsten at the helm and $100 million in financing, Smartbird is now tasked with building out its AI infrastructure and operational capabilities. The company's focus will be on acquiring high-performance GPU assets and establishing itself as a reliable provider in the AI compute market.

The success of Smartbird will depend on its ability to navigate the complexities of AI hardware procurement, data center operations, and attracting a strong team of AI and infrastructure experts. This pivot represents a high-stakes gamble, but in an era defined by AI, it's a move that many companies are making to stay relevant and tap into new growth opportunities. The industry will be watching closely to see how this former footwear giant redefines itself in the AI landscape.

Frequently Asked Questions

What is Smartbird, and what does it do?

Smartbird is the new name for the company formerly known as Allbirds. It has pivoted entirely from selling sustainable footwear to becoming an AI infrastructure company, aiming to provide "GPU-as-a-service" for high-performance computing needs in the AI market.

Is Joey Zwillinger still involved with Smartbird (formerly Allbirds)?

No, Joey Zwillinger, the co-founder and former CEO of Allbirds, stepped down from his role in March 2024. He is not involved in Smartbird's AI pivot.

What is Joey Zwillinger doing now?

Joey Zwillinger has launched a new company called Biologica, a women's hormonal health company, with his wife Liz Zwillinger. Biologica focuses on developing hormonal supplements.

How much funding has Smartbird (formerly Allbirds) secured for its AI venture?

Smartbird initially secured $50 million in financing in April 2026 for its AI pivot, which was later increased to $100 million in June 2026 to support its AI infrastructure strategy.