Dallas, December 30, 2025
Applied Digital Corporation and EKSO Bionics are merging to form ChronoScale Corporation, focusing on high-performance AI computing solutions. This merger, set to be finalized in 2026, allows both companies to leverage their strengths independently while significantly impacting the Dallas economy through job creation and innovation in AI technology.
Applied Digital and EKSO Bionics Merge to Form ChronoScale
New Dallas-based Company to Drive AI Infrastructure Growth
Dallas, Texas – Applied Digital Corporation (NASDAQ: APLD) has announced plans to spin out its cloud computing business, Applied Digital Cloud, combining it with EKSO Bionics Holdings, Inc. (NASDAQ: EKSO) to create a new entity called ChronoScale Corporation. This strategic merger aims to capitalize on the growing demand for high-performance computing solutions specifically designed for next-generation artificial intelligence (AI) workloads.
The merger, slated for the first half of 2026, represents a significant move in the tech sector. Applied Digital will retain a major stake, owning approximately 97% of the new venture. By establishing ChronoScale, both companies hope to leverage their strengths independently, enabling them to pursue distinct growth trajectories while maintaining strategic and operational flexibility.
Applied Digital’s Performance and Growth
Applied Digital Cloud has recently showcased its innovation within the AI infrastructure market by being one of the first to deploy NVIDIA’s H100 GPUs at scale in 2023. The business has produced strong financial results, with revenues approximating $75.2 million for the twelve months ending August 31, 2025. This growth underscores the increasing demand for dedicated accelerated compute capacity, particularly for enterprise-level and AI-native clients.
As generic cloud environments struggle to meet the specific needs of high-density GPU performance, ChronoScale aims to provide tailored solutions for customers requiring rapid deployment and control of their infrastructure. This initiative reflects a broader trend in the tech industry where specialized services are becoming essential amid the rapid evolution of AI technologies.
EKSO Bionics Continuing Their Legacy
In conjunction with the merger, EKSO Bionics plans to explore further strategic transactions concerning its existing exoskeleton business. Known as a leader in wearable exoskeletons designed for both medical and industrial applications, EKSO aims to improve human mobility and strength. The merger with Applied Digital’s cloud computing arm will allow each branch to focus on its core competencies and expand its market reach.
Benefits of the Merger for Dallas and Beyond
The formation of ChronoScale Corporation is poised to enhance the Dallas County economy by creating new job opportunities and fostering technological innovation. With a central headquarters in Dallas, Applied Digital not only contributes to the local economy but also underscores Texas’s position as a burgeoning tech hub. By streamlining operations and reducing regulatory hurdles for startups and established firms alike, Texas entrepreneurs can expand their impact on both local and national levels.
In an era where artificial intelligence is set to influence various industries, the highlighted collaboration between Applied Digital and EKSO Bionics stands as a strong example of private sector innovation. By combining their respective technologies and expertise, both companies can significantly improve productivity and push the boundaries of what is achievable with AI.
Conclusion
The proposed merger between Applied Digital and EKSO Bionics represents a forward-thinking initiative that aligns with the growing demand for advanced computing solutions in the AI sector. As ChronoScale Corporation takes shape, stakeholders from the Dallas business community and beyond should remain engaged and supportive of such ventures, which not only foster innovation but also enhance economic growth.
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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 business, Applied Digital Cloud, with EKSO Bionics Holdings, Inc. to form a new entity named ChronoScale Corporation. This entity will focus on providing high-performance computing solutions tailored for next-generation AI workloads.
What is the ownership structure of the combined company?
Upon completion of the proposed transaction, Applied Digital is expected to own approximately 97% of the combined company, which will operate under the name ChronoScale.
What is the expected timeline for the transaction?
The transaction is expected to close in the first half of 2026, subject to due diligence, regulatory approvals, shareholder votes, and final documentation.
What is Applied Digital’s role in the AI infrastructure market?
Applied Digital has demonstrated its capabilities in the AI infrastructure market by being among the first platforms to deploy NVIDIA’s H100 GPUs at scale in 2023. The business generated approximately $75.2 million in revenue for the twelve months ending August 31, 2025, reflecting strong demand for dedicated accelerated compute capacity.
What is EKSO Bionics Holdings, Inc. known for?
EKSO Bionics Holdings, Inc. is a global leader in wearable exoskeletons for medical and industrial use. The company is dedicated to developing and commercializing exoskeletons that enhance human mobility and strength, aiming to improve the quality of life for individuals with mobility challenges and to increase productivity in industrial settings.
Key Features of the Proposed Transaction
| Feature | Description |
|---|---|
| Proposed Business Combination | Merger of Applied Digital’s cloud computing business with EKSO Bionics Holdings to form ChronoScale Corporation. |
| Ownership Structure | Applied Digital to own approximately 97% of the combined company, ChronoScale. |
| Transaction Timeline | Expected to close in the first half of 2026, subject to due diligence, regulatory approvals, shareholder votes, and final documentation. |
| Applied Digital’s Market Position | Among the first to deploy NVIDIA’s H100 GPUs at scale in 2023, generating approximately $75.2 million in revenue for the twelve months ending August 31, 2025. |
| EKSO Bionics Holdings’ Focus | Global leader in wearable exoskeletons for medical and industrial use, enhancing human mobility and strength. |
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