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News  ›  Benzinga

Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale

Benzinga Logo Benzinga By Globe Newswire
Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale

Applied Digital announced a proposed business combination of its cloud computing business with Ekso Bionics Holdings to create ChronoScale, an accelerated compute platform for AI workloads. Applied Digital would own approximately 97% of the combined company upon closing. The transaction is expected to close in the first half of 2026, allowing each business to scale independently with greater strategic flexibility.

Insights
NRGU   neutral

Proposed a modular approach to AI agents, focusing on specialized, discrete task performance


APLD   positive

The company is strategically spinning out its cloud business to create a focused, high-growth AI compute platform (ChronoScale) while maintaining 97% ownership. This allows independent scaling and greater capital flexibility. The cloud business generated $75.2M in revenue (12-month period ending August 31, 2025) with strong demand from enterprise and AI customers.