Home / Business and Economy / Applied Digital Spins Off Cloud for AI Dominance
Applied Digital Spins Off Cloud for AI Dominance
2 Jan
Summary
- Applied Digital is spinning off its cloud division, Applied Digital Cloud, into a new entity called ChronoScale Corporation.
- Applied Digital will retain approximately 97% ownership of the new AI-focused entity.
- The company has secured billions in long-term contracts for its data centers, including an $11 billion deal with CoreWeave.
Applied Digital has announced a significant strategic spinoff, merging its cloud computing division, Applied Digital Cloud, with EKSO Bionics Holdings. This transaction will create a new, standalone entity named ChronoScale Corporation, dedicated to accelerated computing for AI training and inference workloads. Applied Digital is set to retain approximately 97% ownership of ChronoScale, effectively spinning out its cloud business while maintaining near-complete control.
This separation is designed to allow both Applied Digital's core data center development business and the new ChronoScale entity to pursue distinct growth strategies with enhanced capital flexibility. For investors, this spinoff offers exposure to two separate AI infrastructure plays. Applied Digital's stock has seen substantial gains over the past year, despite a recent dip from its 52-week high.
