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News  ›  GlobeNewswire Inc.

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

GlobeNewswire Inc. Logo GlobeNewswire Inc. By Na
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 division (Applied Digital Cloud) with EKSO Bionics to create ChronoScale, a GPU-accelerated compute platform purpose-built for AI workloads. Applied Digital would own approximately 97% of the combined company post-closing. The transaction is expected to close in H1 2026 and aims to allow each business to scale independently with greater strategic flexibility.

Insights
OILD   neutral

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


APLD   positive

The company is strategically separating its cloud business to create a focused, specialized AI compute platform (ChronoScale) with greater capital flexibility. Applied Digital Cloud generated $75.2M in revenue (12-month period ending Aug 31, 2025) with strong growth, and Applied Digital retains 97% ownership of the combined entity, maintaining significant value and control.