Smartbird: the former Allbirds reinvents itself as an AI infrastructure giant

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Key Takeaways

1Nadia Carlsten takes the helm of Smartbird, formerly Allbirds, to focus on AI infrastructure.

2Allbirds, once valued at $4 billion, saw its value plummet below $20 million before its strategic pivot.

3Smartbird targets the mid-market, providing dedicated AI infrastructure for pharmaceutical and financial companies.

💡Why it matters — This radical transformation demonstrates how companies are responding to the rapid changes in the tech sector.

Smartbird: A New Era Under the Leadership of Nadia Carlsten

Nadia Carlsten has recently been appointed CEO of Smartbird, marking a significant turning point for the company formerly known as Allbirds. This radical transformation has seen the firm reinvent itself as an AI infrastructure provider, a decision that comes with Carlsten's ambition to create tailored AI solutions for mid-sized businesses.

There was a time when Allbirds was the darling of Silicon Valley, famous for its eco-friendly wool sneakers. However, the company has chosen to turn the page on that era by selling its shoe business and drastically reducing its workforce. Now, under the name Smartbird, it is venturing into the AI infrastructure sector, led by a CEO who has never worn the brand's famous shoes.

A Bold Pivot to AI

This radical change represents one of the boldest pivots in the AI era, testing the ability of a struggling public consumer company to transform into a major player in AI. "I'm more of a high heels person," joked Nadia Carlsten during an interview with Business Insider, highlighting her detachment from Allbirds' former identity.

Founded in 2015, Allbirds quickly captured the hearts of Silicon Valley, its sneakers becoming as iconic as hoodies and Patagonia jackets. After going public in 2021, the company was valued at nearly $4 billion. However, that "cool" aura faded as quickly as it appeared, and by early 2025, Allbirds' market value had fallen below $20 million.

An Official Transformation and Mixed Reception

In April, the company announced a strategic pivot planned for 2026, abandoning shoe sales to focus on AI infrastructure, competing with giants like Amazon, CoreWeave, and Crusoe. While some criticized this move as "weird" or "ridiculous," Wall Street initially reacted positively, with a temporary 800% surge in stock price at the announcement, although those gains have since been lost.

The transformation became official when the company finalized the sale of the Allbirds brand and its shoe-related assets, changing its name to Smartbird and appointing Carlsten as president and CEO. She succeeds Joe Vernachio, who is leaving the company and its board.

A Journey Rich in Innovation

Before joining Smartbird, Carlsten led the Danish Centre for AI Innovation and held product management positions at SandboxAQ. She also launched the quantum computing service at Amazon Web Services. With almost all original staff gone, Carlsten is starting from scratch but retains the stock symbol BIRD on NASDAQ.

In a discussion with Business Insider, Carlsten shared her ambitions for the company. This interview has been edited for clarity.

A Vision for the Future of Smartbird

When asked about her journey at Allbirds, Carlsten reflected on her experience in Silicon Valley, where companies like Slack, Twitter, and SpaceX have also undergone radical transformations. She emphasized that while Smartbird's entry into the AI infrastructure sector is not typical, it is backed by a solid plan and a clear strategy. "In a few months, people won't even remember the shoes," she asserted.

Rebuilding a Company from Scratch

Carlsten described the current state of the company as a blank slate, with the sale of the shoe business and the departure of retail staff. Her priority is to recruit a new team to build this new entity.

The Advantages of Being a Public Company

Although Smartbird resembles a startup, Carlsten highlighted the advantages of being a public company, including access to capital and ease of recruitment. She stressed the importance of speed in the AI sector, stating that liquidity facilitates acquisitions and partnerships.

The Challenges of Managing a Public Company

Carlsten acknowledged that managing a public company involves increased scrutiny, but she downplayed the impact of this pressure on building the business. According to her, the AI sector is constantly evolving, and customer demands are changing rapidly.

The Mission of Smartbird

Smartbird positions itself as an AI infrastructure company, distinguishing itself by focusing on the mid-market, particularly pharmaceutical and financial companies, as well as countries interested in sovereign AI. These clients seek dedicated AI infrastructure, avoiding shared systems to protect their proprietary data.

Competing with AI Giants

Carlsten explained that Smartbird does not aim to compete directly with hyperscalers like AWS or Azure. Instead, the company targets clients needing smaller-scale AI infrastructures, offering tailored solutions without the complexity of managing the stack themselves.

GPU Sourcing

Smartbird will source GPUs from various suppliers, providing its clients with the flexibility to build infrastructure tailored to their specific needs.

Infrastructure Acquisition Strategy

Rather than renting, Smartbird will purchase and develop infrastructure for its clients, building on demand to meet specific needs. This agile approach allows the company to stand out from the larger market players.