Applied Digital announced a cloud business spinout through a proposed merger with EKSO Bionics on December 29, 2025. The companies entered a non-binding term sheet to combine Applied Digital Cloud with EKSO, forming ChronoScale Corporation as a dedicated AI compute platform.
The transaction would give Applied Digital approximately 97% ownership of ChronoScale, according to the announcement. Applied Digital Cloud generated $75.2 million in revenue for the twelve months ended August 31, 2025, reflecting growing enterprise demand for GPU-accelerated infrastructure.
ChronoScale targets AI workloads requiring high-performance compute at scale. The platform leverages Applied Digital Cloud's existing infrastructure, which deployed NVIDIA's H100 GPUs at scale in 2023 ahead of broader market adoption.
"This Proposed Transaction emanates from our previously announced initiative to evaluate and explore strategic alternatives," said Scott Davis, EKSO's Chief Executive Officer. EKSO plans to continue exploring strategic transactions for the possible sale of its exoskeleton business.
Applied Digital Chairman and CEO Wes Cummins stated ChronoScale aims to "deliver accelerated compute at scale for the most demanding AI workloads." The separation allows Applied Digital's data center ownership business and the cloud platform to pursue independent growth trajectories.
The transaction is expected to close in the first half of 2026, pending due diligence, binding documentation, and regulatory approvals. ChronoScale will file registration statements and proxy materials with the Securities and Exchange Commission.
Applied Digital operates high-performance data centers for AI, cloud, and blockchain workloads, while EKSO develops exoskeleton solutions for medical and industrial applications. The merger creates a focused entity positioned for the expanding AI infrastructure market.
