Allbirds Inc. has completed its pivot to an AI infrastructure firm.

As part of its pivot, the company on Wednesday renamed itself for the second time to Smartbird Inc. and has appointed Nadia Carlsten as its new president and chief executive officer. Upon her appointment, Joe Vernachio resigned from the company and its board of directors.

The former sneaker brand said in April that it would sell its intellectual property and assets to American Exchange Group, a brand management firm for $39 million. At the time of the announcement, the company said its new name would be NewBird AI, but has since changed its mind again.

Steve Hochman, managing director and Americas partner at digital product engineering firm Nagarro, said the shift in the company’s operating model allows the publicly-traded firm to raise money for a new business that’s essentially using “public seed money.” But he’s not convinced that the pivot will be a successful one, describing the move as more a “wait-and-see” story.

Smartbird said on Wednesday that it has strengthened its balance sheet by increasing the size of its convertible financing facility from $50 million to $100 million.

The former Allbirds had been showing signs of struggle for some time. Last November, it posted third-quarter revenue that dropped 23.3 percent to $33 million, versus $43 million in the same year-ago period. And this past January, the sneaker brand said it would close all U.S. full-price stores to be more profitable, keeping open two U.S. outlet stores and two London full-price locations.

American Exchange Group on Wednesday said it had completed its acquisition of Allbirds’ IP assets in partnership with WSG Brands, a brand management and licensing platform. WSG is the acronym for White Space Group. Under their partnership, WSG will be the key operating and growth partner, while American Exchange will design and manufacture the footwear.

“Together, the group will focus on strengthening the brand’s existing business while pursuing new opportunities across product categories, retail distribution, licensing, and international markets,” American Exchange said in a statement.

“Allbirds has built a globally recognized brand by bringing a distinct point of view to the market and creating a meaningful connection with consumers around the world,” said American Exchange’s chief executive officer Alen Mamrout. He added that by combining his company’s product development, sourcing and manufacturing capabilities with WSG’s expertise in brand management and market expansion, “we intent to thoughtfully extend Allbirds into new categories, channels, and international markets while preserving the authenticity and values that have made the brand so distinctive.”

“We believe Allbirds represents one of the most compelling brand opportunities in the market today,” WSG founder and CEO Jack Cheika said.

WSG said it will be using the same playbook that it “successfully executed” with lifestyle brand Von Dutch, which it acquired in 2024.

Additional announcements regarding partnerships, licensing initiatives, and international expansion plans are expected in the coming months, the company said.