Applied Digital (NASDAQ: APLD) and EKSO Bionics Holdings, Inc. (Nasdaq: EKSO) announced a proposed business combination to form ChronoScale Corporation, an accelerated compute platform for AI workloads.
The Proposed Transaction aims to create a focused platform delivering high-performance compute at scale in a capacity-constrained market.
ChronoScale is designed to offer predictable performance, infrastructure control, and rapid deployment for advanced AI training and inference workloads.
Proposed Business Combination
Applied Digital's cloud computing business to merge with EKSO to create ChronoScale Corporation, focusing on GPU-accelerated cloud infrastructure.
Ownership Structure
Upon closing, Applied Digital would own approximately 97% of the combined company to operate as ChronoScale.
Strategic Rationale
The transaction allows businesses to scale independently, pursue distinct growth trajectories, and operate with greater flexibility.
Revenue Growth
Applied Digital Cloud generated a revenue of approximately $75.2 million as of August 31, 2025, showcasing increasing demand for dedicated accelerated compute.
Future Outlook
The Proposed Transaction is expected to close in the first half of 2026, subject to customary approvals and conditions.
- The merger is set to address the growing demand for GPU-accelerated cloud infrastructure in the AI market.
- ChronoScale's design aims to meet the specific requirements of advanced AI workloads, offering enhanced performance and efficiency.
- The transaction positions Applied Digital to expand its footprint in the AI and cloud computing industry, leveraging its expertise in next-generation GPU infrastructure.
The proposed business combination between Applied Digital and EKSO to form ChronoScale Corporation signifies a strategic move to meet the evolving needs of AI workloads. This transaction reflects the companies' commitment to delivering high-performance compute solutions in a dynamic market environment.