Applied Digital has entered into a non-binding term sheet with Ekso Bionics to spin off its cloud computing unit and merge it with Ekso’s operations to create a new AI-focused accelerated compute platform named ChronoScale. Applied Digital will retain approximately 97% ownership of the combined entity upon closing, which is expected in the first half of 2026. The restructuring is designed to unlock value by separating data center development from the specialized cloud arm, while Ekso explores strategic options for its existing business lines.

Applied Digital has fully contracted 400 megawatts of data center capacity at its Polaris Forge 1 campus in Ellendale, North Dakota under a 15-year hyperscaler lease valued at roughly 11 billion dollars. The first 100-megawatt building was certified ready for service in late November 2025, marking the transition from construction to recurring revenue generation. Management projects that once fully ramped, the CoreWeave lease will contribute 500 million dollars in annual net operating income. Plans are underway to scale Polaris Forge 1 beyond one gigawatt between 2028 and 2030, subject to additional power availability.

Construction of the 300-megawatt Polaris Forge 2 campus is on schedule to begin service in late 2026 with full operations set for 2027. Applied Digital has pre-leased 200 megawatts of this capacity under a separate 15-year agreement valued at approximately 5 billion dollars, leaving minimal risk of unsold capacity. With both campuses ramping over the next two years, management reaffirms its target of achieving a one-billion-dollar net operating income run rate within five years, driven by long-term hyperscaler demand for AI-ready infrastructure.

Applied Digital’s shares have surged more than 236% year-to-date in 2025 and have climbed 225% since the beginning of the year, demonstrating significant investor enthusiasm for the AI infrastructure story. The equity remains supported by its ascending 120-day moving average, which has limited pullbacks following a 20-year high earlier in October. Notably, short interest stands at 33.5% of the available float, indicating a three-day coverage ratio at average trading volumes and highlighting potential for a short squeeze if positive catalysts materialize.