Applied Digital to Spin Out Cloud Business, Proposes Business Combination with EKSO to Launch ChronoScale
12/29/2025 04:45 PM • 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.
APLD - 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.
Investing.com • Itai Smidt