Shares in Allbirds have retreated by 36% a day after the sneaker brand’s sensational pivot to artificial intelligence saw its stock price skyrocket by as much as 800%. The New Zealand-founded, US-based company traded at US$10.91 (AU$15.20) a share at close on Thursday local time, down from its Wednesday close of US$16.99 (AU$23.71). Allbirds shares had traded for as much as US$24 (AU$33.45) through Wednesday, after its management announced it was leaving the shoe business behind to instead focus on artificial intelligence infrastructure. In one of the most significant about-faces in recent corporate history, the Nasdaq-listed company said it will buy and lease the GPU chips to firms hungry for AI computing power. Allbirds, which made its name on comfortable woollen footwear, will also become an “AI-native cloud solutions provider,” according to the statement. Smarter business news. Straight to your inbox. For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free. * indicates required Email Address * By continuing, you agree to our Terms & Conditions and Privacy Policy. Related Article Block Placeholder Article ID: 334925 Allbirds shares soar 800% after ditching sneakers for… AI David Adams News of the pivot, its planned name-change to Newbird AI, and its new institutional investment worth US$50 million (AU$69.7 million) reportedly caused retail traders to flock around the business. Just as quickly as investors piled in, onlookers compared the transition to other abrupt corporate rebrands in the near past. New York-based beverage company Long Island Iced Tea pivoted to blockchain in the Bitcoin-obsessed year of 2017, in a move that saw its publicly-listed shares rapidly appreciate. However, the Nasdaq delisted the renamed Long Blockchain in 2018 for failing to meet its minimal capitalisation rules. To be clear, miraculous pivots to AI infrastructure have paid off in the past. The Australian-founded IREN pivoted from its renewables-powered Bitcoin mining operations into the data centre powerhouse it is today, which today commands a US$19.03 billion (AU$26.5 billion) market cap. Stay in the know Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.