Overview
- Applied Digital said it will spin off its cloud business by combining it with Ekso Bionics to form ChronoScale, with Applied owning about 97% of the new company.
- The new entity is intended to deliver high-performance, GPU-accelerated infrastructure for AI workloads in a capacity-constrained market.
- Applied Digital said separating compute operations from data center ownership and development will give each business clearer growth and capital strategies.
- Ekso Bionics will explore selling all or a substantial portion of its legacy business as ChronoScale focuses on accelerated compute.
- Shares rose about 3% after the announcement, partially reversing a prior slide that followed reports of a localized power outage at Applied Digital’s Ellendale campus.