For creators and artists relying on compute-heavy workflows, the shift of Allbirds into an artificial intelligence infrastructure provider signals a move away from the chaotic hype of Silicon Valley meme stocks toward a more grounded, albeit niche, reality. The former footwear giant, once synonymous with the casual aesthetic of the tech corridor, has officially divested its shoe business to launch Smartbird, a new entity focused on providing managed AI compute.
From sneakers to servers
The transformation was swift. In April, the company sold its footwear division for $43 million and subsequently raised an additional $100 million from public markets to rebrand as Smartbird. Now, the burden of execution rests with Nadia Carlsten, a former AWS executive holding a PhD in engineering. She most recently helmed the European compute firm DCAI before assuming the CEO role at Smartbird in Amsterdam.
“We’re going to be recruiting a brand new team for the AI business, and we’re going to be getting an office,” Carlsten stated during an interview. “The shoe business has officially closed as of yesterday, so that’s all done…The first task that I’m tackling right now is rounding up the leadership team, looking for somebody to lead infrastructure operations, for example.”
A different approach to compute
Smartbird intends to address the surging demand for computing power required to train and run deep learning models. However, the strategy diverges significantly from the “neocloud” model, which typically arbitrages chip prices against GPU time or inference tokens. Instead, Carlsten is targeting carefully managed deployments where clients require direct control over their servers. This preference often stems from political mandates or specific business models that prioritise data sovereignty over the expansive scalability offered by public cloud providers.
The market for this specific type of service is still in its infancy, with many organisations currently in the pilot phase of AI adoption. At her previous role with DCAI, Carlsten collaborated with entities such as Novo Nordisk and other European firms within the pharmaceutical, energy, financial, and public sectors that share this interest in data sovereignty.
Consequently, Smartbird is not positioning itself against hyperscalers or neoclouds, but rather against internal corporate projects. Established players like Hewlett Packard and data centre giant Equinix already offer single-tenant managed AI compute services. While the business model is viable, its growth trajectory may differ from the exponential expansion seen in broader cloud services.
Carlsten anticipates deploying compute clusters for several customers by the end of the year. This is a more modest ambition compared to rivals like General Compute, which recently announced a $300 billion chip order upon exiting stealth mode. Carlsten notes that Smartbird does not require such massive commitments, as her target customers typically need clusters ranging from hundreds to thousands of chips. The focus here is on the agility of the clusters and control over the infrastructure stack, rather than sheer scale.
Strategy over speculation
While the broader market sees AI infrastructure driving valuations for chipmakers, cloud providers, and energy firms—even fueling interest in orbital data centres—Carlsten insists the Allbirds pivot was deliberate. She will receive an annual salary of $700,000 and stock valued at approximately $9 million for the role.
“It wasn’t, ‘Let’s just do AI, because it’s AI, and it’s hot,'” Carlsten explained. “It was really about, do we have a chance to build a business over time that is going to find this niche in the market and be able to grow over time?”
The transition also marked the end of Allbirds’ public benefit corporation status, a designation often used to enshrine sustainability commitments. This shift suggests that such charters may not be as immutable as previously thought, though Smartbird’s board has committed to executing Carlsten’s long-term AI strategy. As she noted, while many companies chase AI trends, the critical factor is whether there is actual weight behind the pursuit.
Key takeaways
- Smartbird, formerly Allbirds, has pivoted to become an AI infrastructure provider focused on managed, single-tenant compute solutions rather than public cloud scalability.
- The company targets specific sectors like pharmaceuticals and energy that prioritise data sovereignty and direct server control over the agility of hyperscalers.
- CEO Nadia Carlsten emphasises a sustainable, niche business model over rapid scaling, aiming to deploy customer clusters by the end of the year without massive chip commitments.
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