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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.