Dallas, Texas, December 31, 2025
Applied Digital Corporation has announced a strategic merger of its cloud computing business with EKSO Bionics Holdings Inc. to create ChronoScale Corporation. This new entity will focus on high-performance computing for AI workloads, enhancing capabilities for enterprise customers. Applied Digital will retain a significant ownership stake, and the deal is expected to close in the first half of 2026, pending regulatory approvals and shareholder votes.
Dallas, Texas – Applied Digital Corporation has announced plans to spin off its cloud computing business and merge it with EKSO Bionics Holdings Inc. to form a new entity, ChronoScale Corporation. This strategic move aims to create a dedicated platform for high-performance computing tailored to artificial intelligence (AI) workloads.
The proposed transaction involves combining Applied Digital’s cloud computing unit, Applied Digital Cloud, with EKSO Bionics, a Nasdaq-listed robotics company. Upon completion, the combined company, ChronoScale, will operate as a GPU-accelerated compute platform designed specifically for AI applications. Applied Digital is expected to retain approximately 97% ownership of the new entity. The deal is anticipated to close in the first half of 2026, subject to due diligence, regulatory approvals, and shareholder votes.
Applied Digital’s cloud computing business has demonstrated significant growth, generating approximately $75.2 million in trailing twelve-month revenue as of August 31, 2025. The unit was among the first to deploy NVIDIA H100 GPUs at scale in 2023, reflecting strong demand for dedicated accelerated compute capacity. By spinning off this unit, Applied Digital aims to allow both its data center development and cloud computing businesses to scale independently, each pursuing distinct capital strategies.
EKSO Bionics, known for developing powered exoskeleton devices, plans to explore strategic alternatives for the potential sale of its existing exoskeleton business. The merger with Applied Digital’s cloud computing unit is part of EKSO’s ongoing strategic review, intended to unlock shareholder value by aligning the company with the rapidly growing AI infrastructure segment.
The formation of ChronoScale is designed to deliver high-density GPU performance for enterprise and AI-native customers who require rapid deployment and infrastructure control—areas where generic cloud environments often fall short. The combined entity is expected to benefit from Applied Digital’s expanding portfolio of purpose-built AI factory campuses, providing accelerated deployment timelines and reduced execution risks amid global GPU demand.
As of December 31, 2025, Applied Digital’s stock (APLD) is trading at $24.08, reflecting a slight decrease of 2.94% from the previous close. Investors are closely monitoring the developments of this proposed merger, which is poised to reshape the landscape of AI-focused cloud computing infrastructure.
Frequently Asked Questions (FAQ)
What is the proposed business combination between Applied Digital and EKSO Bionics?
The proposed business combination involves merging Applied Digital’s cloud computing unit, Applied Digital Cloud, with EKSO Bionics Holdings Inc. to form a new entity called ChronoScale Corporation. This entity will operate as a GPU-accelerated compute platform designed specifically for AI workloads.
What is Applied Digital’s ownership stake in the new company?
Applied Digital is expected to retain approximately 97% ownership of ChronoScale Corporation upon completion of the merger.
When is the proposed transaction expected to close?
The transaction is anticipated to close in the first half of 2026, subject to due diligence, regulatory approvals, and shareholder votes.
What is the current revenue of Applied Digital’s cloud computing business?
As of August 31, 2025, Applied Digital’s cloud computing business generated approximately $75.2 million in trailing twelve-month revenue.
What is EKSO Bionics’ current business focus?
EKSO Bionics is known for developing powered exoskeleton devices and plans to explore strategic alternatives for the potential sale of its existing exoskeleton business.
Key Features of the Proposed Business Combination
| Feature | Details |
|---|---|
| New Entity Name | ChronoScale Corporation |
| Ownership Structure | Applied Digital retains approximately 97% ownership |
| Targeted Closing Date | First half of 2026 |
| Applied Digital’s Cloud Revenue (as of Aug 31, 2025) | $75.2 million in trailing twelve-month revenue |
| EKSO Bionics’ Current Focus | Development of powered exoskeleton devices; exploring strategic alternatives for existing business |
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