Applied Digital (NASDAQ: APLD) and EKSO Bionics Holdings (Nasdaq: EKSO) have outlined plans for a proposed business combination that reflects the accelerating shift toward specialized infrastructure for artificial intelligence workloads.
The companies disclosed that they have entered into a non-binding term sheet to combine Applied Digital’s cloud computing unit, Applied Digital Cloud, with EKSO. If completed, the combined entity would operate under the name ChronoScale Corporation, positioning itself as a focused provider of GPU-accelerated cloud infrastructure designed specifically for AI-driven use cases.
The proposed transaction comes as enterprises and AI-native organizations face intensifying competition for high-performance compute resources. Demand for GPU-accelerated cloud capacity has surged alongside the growth of generative AI, large-scale model training, and inference workloads, while supply remains constrained by hardware availability, power requirements, and deployment complexity. By carving out its accelerated compute platform into a standalone business, Applied Digital aims to allow both its data center development operations and its cloud services business to scale independently and pursue different capital strategies.
ChronoScale is being positioned as a purpose-built alternative to generalized public cloud offerings. According to the companies, the platform is designed for customers that prioritize predictable performance, infrastructure control, and rapid deployment timelines. The strategy reflects a broader market trend in which AI workloads increasingly demand dedicated, densely configured GPU environments rather than shared, multi-tenant cloud instances that can introduce latency or variability.
Under the terms outlined, Applied Digital would retain approximately 97 percent ownership of the combined company following closing. Both Applied Digital Cloud and EKSO Bionics Holdings, Inc. would continue operating their existing businesses after the transaction is consummated. EKSO also indicated it plans to continue evaluating strategic alternatives, including a potential sale of all or substantially all of its current operations, underscoring that the transaction is part of a broader effort to unlock shareholder value.
Executives from both companies framed the deal as a response to structural changes in the digital infrastructure market. EKSO Chief Executive Officer Scott Davis said the company’s strategic review was conducted with a focus on maximizing stakeholder value, and that the proposed combination could achieve that objective. Applied Digital Chairman and Chief Executive Officer Wes Cummins emphasized that AI-driven workloads are reshaping the digital economy and require infrastructure designed from the ground up for accelerated computing.
Deploying NVIDIA’s H100 GPUs at Scale
Applied Digital Cloud’s operating track record is central to the ChronoScale thesis. The business was among the early adopters to deploy NVIDIA’s H100 GPUs at scale in 2023, highlighting its ability to source and integrate next-generation hardware ahead of broader market availability. As of August 31, 2025, the unit reported trailing twelve-month revenue of approximately $75.2 million, driven by growing enterprise and AI-native demand for dedicated accelerated compute delivered through cloud platforms.
ChronoScale is also expected to benefit from Applied Digital’s expanding portfolio of AI-focused data center campuses. This alignment could shorten deployment timelines and reduce execution risk by pairing cloud services with purpose-built physical infrastructure, an increasingly important advantage as power density and energy efficiency become limiting factors in AI scale-out.
The companies expect the transaction to close in the first half of 2026, subject to due diligence, final documentation, regulatory review, shareholder approvals, and customary closing conditions. While non-binding at this stage, the announcement signals how infrastructure providers are restructuring to meet the capital-intensive, performance-driven demands of the AI era.
Executive Insights FAQ
Why are Applied Digital and EKSO pursuing this combination now?
The rapid growth of AI workloads has created strong demand for specialized GPU infrastructure, prompting both companies to seek structures that better align with market needs.
What differentiates ChronoScale from traditional cloud providers?
ChronoScale is designed specifically for accelerated AI compute, emphasizing predictable performance, dense GPU configurations, and rapid deployment rather than generalized services.
How does this affect Applied Digital’s existing businesses?
Separating the cloud platform from data center ownership allows each unit to scale independently and pursue distinct growth and capital strategies.
What role does EKSO play after the transaction?
EKSO will remain operational while continuing to explore strategic alternatives, including a potential sale of its core business.
What are the key risks to closing the transaction?
Completion depends on due diligence, regulatory and shareholder approvals, and final binding agreements, all of which could affect timing or structure.
