The footwear company Allbirds announced a major pivot on Wednesday, shifting its business from shoes to artificial intelligence and rebranding as NewBird AI.

The announcement caused its stock to surge more than 500%, despite the company’s small market value and recent financial struggles.

The new strategy focuses on building AI compute infrastructure by acquiring high-performance hardware and leasing access to customers under long-term contracts, with up to $50 million in planned funding.

The move follows a period of steep decline for Allbirds, which has closed stores, sold assets, and seen sales drop nearly 50% since 2022, CNBC has reported.

The shift places the former shoe brand among a growing number of struggling companies attempting to capitalize on the booming AI industry.