Wed Jan 07 14:50:00 UTC 2026: ### Applied Digital Cloud to Merge with EKSO Bionics, Forming ChronoScale Corporation

The Story:
Applied Digital (December 29, 2025) announced a non-binding term sheet for a proposed business combination of its cloud computing business, Applied Digital Cloud, with EKSO Bionics Holdings, Inc. The combined entity will be named ChronoScale Corporation and is designed as an accelerated compute platform tailored for artificial intelligence (AI) workloads. Applied Digital would own approximately 97% of ChronoScale upon closing. EKSO Bionics plans to explore strategic transactions for the possible sale of all or substantially all of its current business.

Key Points:

  • Applied Digital and EKSO Bionics have entered a non-binding term sheet to form ChronoScale Corporation.
  • ChronoScale will focus on delivering high-performance computing at scale for AI workloads.
  • Applied Digital Cloud generated approximately $75.2 million in revenue for the twelve months ending August 31, 2025.
  • Applied Digital will own around 97% of ChronoScale after the transaction closes, expected in the first half of 2026.
  • EKSO plans to explore selling its existing business.

Key Takeaways:

  • The merger signifies a strategic move by Applied Digital to focus on the high-growth area of AI-accelerated computing.
  • By separating its cloud computing business, Applied Digital aims to allow both its data center and compute platform divisions to scale independently.
  • EKSO Bionics appears to be exiting its current business through a reverse merger, pivoting towards AI infrastructure through the deal.
  • The deal highlights the increasing demand for specialized, high-performance computing infrastructure to support AI applications.

Impact Analysis:

  • Market Shift: The formation of ChronoScale reflects a broader trend towards specialized cloud infrastructure tailored to the needs of AI and high-performance computing, moving away from generic cloud environments.
  • Competitive Landscape: This move could intensify competition in the AI infrastructure market, as ChronoScale aims to challenge existing players with its purpose-built platform and access to Applied Digital’s data center resources.
  • Investment & Innovation: The transaction may spur further investment and innovation in AI-focused data centers and computing technologies as companies race to meet the escalating demands of AI applications.

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