Ekso Bionics Holdings Inc. (EKSO) jumped sharply in overnight trading after Applied Digital (APLD) announced plans to spin out its cloud computing business and merge it with EKSO to form ChronoScale, a purpose-built accelerated compute platform designed for next-generation AI workloads.
Applied Digital and EKSO have entered into a non-binding term sheet to combine Applied Digital Cloud with EKSO, creating a standalone GPU-accelerated compute company positioned to meet rapidly expanding AI infrastructure demand. The move is part of EKSO's ongoing strategic review and is intended to unlock shareholder value by aligning the company with one of the fastest-growing segments of the digital economy.
The newly formed ChronoScale is being designed to deliver predictable, high-density GPU performance for enterprise and AI-native customers who require rapid deployment and infrastructure control- areas where generic cloud environments often fall short.
Applied Digital Cloud brings a mature operating foundation, having been among the first platforms to deploy NVIDIA H100 GPUs at scale in 2023. The business generated approximately $75.2 million in trailing twelve-month revenue as of August 31, 2025, reflecting strong demand for dedicated accelerated compute capacity.
The proposed transaction would separate Applied Digital's accelerated compute platform from its data-centre development business, allowing each to scale independently and pursue distinct capital strategies.
Upon closing, Applied Digital would own roughly 97% of the combined company, ChronoScale. EKSO's existing exoskeleton business will continue to operate during the transition, and the company plans to explore strategic alternatives for the potential sale of all or substantially all of its current operations.
EKSO CEO Scott Davis said the transaction aligns with the company's strategic review and has the potential to maximize shareholder value.
The transaction is expected to close in the first half of 2026, subject to due diligence, regulatory approvals, shareholder votes, and final documentation. ChronoScale is expected to file a Form S-4 or proxy statement with the SEC as part of the process.
EKSO shares surged following the announcement. After closing at $5.46, the stock is trading around $7.73 in overnight action, up roughly 41%. The stock has traded between $2.73 and $14.97 over the past year.
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