GoPro, the struggling action camera maker, is making a dramatic pivot into artificial intelligence infrastructure. The company announced a definitive merger with Starman Optical, a private photonics company, in a deal that will push GoPro into AI data center and defense markets.
Under the terms, shareholders will receive a $285 million cash payment — $1.14 per share — while the stock remains listed on Nasdaq. GoPro shares surged approximately 40% following the announcement.
"We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company, addressing important areas of national security related to cameras, optics and AI infrastructure," said CEO Nicholas Woodman.
The company also said its $92 million debt will be repaid at closing, and it will continue supporting existing consumer products while investing in a broader, diversified product roadmap. Notable shareholders set to benefit include YouTuber Markiplier, who acquired an 8.5% stake, and BlackRock, which disclosed a 6.4% position earlier in the summer.
GoPro joins a growing list of struggling consumer brands pivoting to AI infrastructure. In April, footwear company Allbirds rebranded as Smartbird, abandoning sustainable shoes for AI compute and hardware. The trend reflects the enormous capital flowing into AI data centers, even as it attracts companies far from their core expertise.
