Applied Digital is seeking to spin out its cloud computing unit.

The data center provider is working with Ekso Bionics Holdings (Ekso) - a company that develops exoskeleton solutions - seeking to combine its cloud unit with Ekso into an AI cloud provider called ChronoScale Corporation.

Should the transaction go through, ChronoScale will provide GPU cloud infrastructure to customers, aiming to offer high-performance compute at scale.

Applied would retain around 97 percent ownership of ChronoScale, with Ekso holding the remaining shares. The deal is set to close in the first half of 2026.

“This proposed transaction emanates from our previously announced initiative to evaluate and explore strategic alternatives,” said Scott Davis, Ekso’s CEO. “We approached our review thoughtfully and with an aim to maximize shareholder value, and we believe the proposed transaction has the potential to achieve that goal and that the proposed transaction is in the best interest of Ekso’s stakeholders.”

“ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads,” added Wes Cummins, chairman and CEO of Applied Digital. “As AI workloads continue to reshape the digital economy and intensify, infrastructure must be purpose-built, not generalized — and ChronoScale’s design is intended to meet these requirements.”

Applied Digital, previously known as Applied Blockchain, shifted away from solely focusing on crypto in late 2022.

While the company develops and operates data centers across North America to cater to high-performance computing (HPC), it has a cloud offering previously known as "Sai Computing," though now seemingly named "Applied Digital Cloud," which offers a variety of Nvidia GPUs, including the H100 and H200s.

In March, the company said it would also be offering the Blackwell line of GPUs, though these are yet to be listed on its website.

At the start of December, Applied announced it had completed the first HPC data center building at its campus in Ellendale, North Dakota, bringing 100MW online. The company counts CoreWeave among its customers.

Founded in 2005 as a Berkley spin-out, Nasdaq-listed Ekso develops wearable exoskeletons. The company said in its own release that it plans to continue to explore strategic transactions for the possible sale of all or substantially all of Ekso’s current business.

Last year, Ekso joined the Nvidia Connect program and developed an AI proof of concept, deploying a new AI voice agent for one of its exoskeletons, powered by an Nvidia Jetson module.