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 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.
APLD - 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.
Investing.com • Itai Smidt