Applied Digital Announces Spin-off and Merger to Form New AI-Focused Corporation, ChronoScale
Applied Digital Corporation announced a significant business combination on December 29, 2025. The proposed plan will spin out its cloud computing business and merge it with EKSO Bionics Holdings, forming a new entity named ChronoScale Corporation. This new corporation is set to provide an accelerated compute platform, specifically designed for artificial intelligence workloads.
The transaction aims to separate Applied Digital’s cloud-based GPU computing platform from its data center ownership and development operations. This strategic move will allow each business to scale independently. As of August 31, 2025, Applied Digital Cloud had generated approximately $75.2 million in revenue over twelve months. It was also among the first platforms to deploy NVIDIA’s H100 GPUs at scale in 2023.
Upon completion of the merger, Applied Digital will retain approximately 97% ownership of ChronoScale, with EKSO Bionics shareholders holding the remaining stake. “ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads,” said Wes Cummins, Chairman and CEO of Applied Digital. The proposed transaction is expected to close in the first half of 2026, subject to customary due diligence, regulatory approvals, and shareholder approval.
Source: Applied Digital Press Release