Business
Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale
Proposed Business Combination with Nasdaq-listed EKSO to Form an Accelerated Focused GPU Platform Purpose Built for Next-Generation AI Workloads DALLAS, Dec.
About this update from Applied Digital Corporation
[{"type":"text","content":"Proposed Business Combination with Nasdaq-listed EKSO to Form an Accelerated Focused GPU Platform Purpose Built for Next-Generation AI Workloads\nDALLAS, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Applied Digital (NASDAQ: APLD), a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads, and EKSO Bionics Holdings, Inc. (Nasdaq: EKSO) (“EKSO”) announced today that Applied Digital and EKSO entered into a non-binding term sheet for a proposed business combination of Applied Digital’s cloud computing business, Applied Digital Cloud, with EKSO, which, once closed, will go forward as ChronoScale Corporation, an accelerated compute platform purpose-built to support artificial intelligence (“AI”) workloads (the “Proposed Transaction”). As enterprise and AI-native demand for GPU-accelerated cloud infrastructure continues to grow rapidly, the Proposed Transaction is intended to create a focused platform designed to deliver high-performance compute at scale in a capacity-constrained market. By separating the accelerated compute platform from Applied Digital’s data center ownership and development business, the Proposed Transaction will allow each business to scale independently, pursue distinct growth trajectories, and operate with greater strategic and capital flexibility. ChronoScale is being designed for customers who require predictable performance, infrastructure control, and rapid deployment without the tradeoffs of generic cloud environments. The ChronoScale platform is expected to leverage the mature Applied Digital Cloud business to rapidly deploy and scale next-generation GPU-based compute infrastructure optimized for advanced AI training and inference workloads requiring dense, reliable, and efficiently delivered accelerated compute. Upon closing of the Proposed Transaction, Applied Digital would own approximately 97% of the combined company, which will operate under the name ChronoScale. The Applied Digital Cloud and EKSO businesses would continue to operate upon consummation of the Proposed Transaction, and EKSO plans to continue to explore strategic transactions for the possible sale of all or substantially all of EKSO’s current business. “This Proposed Transaction emanates from our previously announced initi...