Ekso Bionics Holdings, Inc. (EKSO) shares jumped more than 54% in premarket trading Tuesday after announcing a non-binding term sheet with Applied Digital Corporation (APLD) to merge their cloud computing operations into a new company called ChronoScale Corporation.

The proposed transaction would combine Applied Digital's cloud computing unit with Ekso to create a standalone platform built specifically for AI workloads. Think of it as Applied Digital carving out the part of its business that runs compute for AI customers and giving it room to grow independently.

Why Split Now?

The logic here is straightforward: GPU-accelerated cloud infrastructure has become one of the hottest commodities in tech as enterprises scramble to deploy AI applications. By separating the cloud platform from Applied Digital's data center development business, each operation can pursue its own growth strategy without competing for capital or management attention.

ChronoScale is being positioned as the answer for customers who need predictable performance and infrastructure control without settling for generic cloud services. The platform will tap into Applied Digital Cloud's existing operations to rapidly deploy GPU-based compute infrastructure optimized for AI training and inference tasks.

Deal Structure and Ownership

Once the transaction closes, Applied Digital would own roughly 97% of ChronoScale. Both the Applied Digital Cloud business and Ekso's operations will continue running, though Ekso has indicated it plans to explore selling all or most of its existing medical robotics business.

ChronoScale will benefit from Applied Digital's growing network of AI data center campuses, which should give it faster infrastructure access, accelerate deployment timelines, and reduce execution risk as GPU demand continues climbing.

Applied Digital Cloud has some credibility here. It was among the first platforms to deploy NVIDIA's H100 GPUs at scale back in 2023, showing it can source, integrate, and operate cutting-edge GPU infrastructure ahead of the broader market. The business generated approximately $75.2 million in revenue over the twelve months ending August 31, 2025, driven by strong demand from enterprise and AI-native customers seeking dedicated accelerated compute through cloud platforms.

Timeline and Next Steps

The proposed transaction is expected to close in the first half of 2026, subject to the usual regulatory approvals, shareholder votes, and standard closing conditions. Until then, it remains a non-binding term sheet, meaning either party could still walk away.

Ekso Bionics shares were trading at $8.41 in premarket action Tuesday, up 54.03%. Applied Digital shares gained 1.81%.