Applied Digital (NASDAQ: APLD) and Ekso Bionics Holdings, Inc. (NASDAQ: EKSO) entered into a non‑binding term sheet on December 29, 2025 to merge Applied Digital’s high‑performance data‑center and cloud‑computing unit, Applied Digital Cloud, with Ekso Bionics. The combined entity will be named ChronoScale Corporation and will focus on delivering purpose‑built, GPU‑accelerated compute for artificial‑intelligence workloads. Under the proposed structure, Applied Digital will own approximately 97 % of the new company, while Ekso will retain a minority stake and continue to operate its exoskeleton business.
The transaction positions ChronoScale to capture a rapidly expanding AI‑compute market projected to grow at 16‑20 % CAGR over the next five years. Applied Digital’s existing deployment of NVIDIA H100 GPUs and its experience building sustainable data‑center campuses provide the technical foundation, while Ekso’s established customer relationships and capital resources add scale and diversification. The parties expect the combination to close in the first half of 2026, subject to customary due diligence, regulatory approvals and shareholder votes.
Financially, Applied Digital reported Q3 FY2025 revenue of $52.9 million, up 22 % year‑over‑year, and a net loss of $36.1 million. The company beat consensus earnings estimates by $0.08 per share, reporting a diluted EPS of –$0.03 versus an expected –$0.11, largely due to disciplined cost management amid continued capital investment. Ekso Bionics posted Q3 2025 revenue of $4.2 million, a 2 % year‑over‑year increase, and a net loss of $1.4 million. Ekso also beat earnings expectations, reporting –$0.54 per share versus an anticipated –$0.99, reflecting stronger-than‑expected demand for its exoskeleton products and effective pricing in a competitive market.
The deal represents a strategic pivot for Ekso, which has historically focused on medical robotics. By entering the AI‑compute space, Ekso can leverage its capital and operational expertise to diversify revenue streams and tap into a high‑growth sector. Applied Digital, meanwhile, is separating its cloud platform from its data‑center development operations, allowing each entity to scale independently and unlock value. The combination is expected to create a differentiated, scalable platform that can serve enterprise AI customers and large‑scale research organizations, addressing the capacity constraints that currently limit AI deployment.
Management emphasized the strategic fit and confidence in the new platform. Scott Davis, CEO of Ekso Bionics, said the transaction “emerges from our ongoing evaluation of strategic alternatives and positions the company to maximize shareholder value.” Wes Cummins, Chairman and CEO of Applied Digital, added that “ChronoScale will bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads.” The announcement was well received by investors, with analysts noting the complementary strengths of the two companies and the potential for accelerated growth in the AI‑compute market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.