Compute Debt Obligation
Understand how the compute circlejerk works.
Ceedo, the CDO cat, in three dimensions, holding a graphics card. Click or press the arrow keys to change his face.
01 / Map
AI Capital Loop
Nine companies and the thirteen legs of money reported between them. Each leg links to the filing or announcement it comes from.
02 / Model
Ceedo
Character model sheet, v1.0. Pick a face and every Ceedo on the page wears it.
03 / Structure
Structure your own CDO
Choose whose contracted obligations go in the pool, cut it into three tranches, and stress it.
The waterfallholding
Concentration is the share of the pool owed by its largest payer. Circular collateral is the share paid by companies that are themselves funded from inside the loop.
Collateral
Stressauto
04 / Analyze
What the last dollar earned
Pick a company and a year. What it spent on capacity, what extra profit came back, and whether the new money earned its keep.
The worksheetclears
Microsoft · NASDAQ: MSFT · FY ended 30 June 2026
Spent on capacity
FY2026 $MTick a line out and the answer moves.
Extra profit, after tax
$MHow much more than the year before.
What the new money earned
return 21,528 ÷ capital 140,556
15.3%4.7 points clear of the band
No company files this number.
Against what the money cost
The tall tick is what the filing earned. The short one is the figure that gets quoted. The band is what the money cost.
Microsoft's newest capital earned 15.3% against a 9.3–10.7% hurdle band, clearing it by +6,545 to +8,400. The 24.9% that gets quoted sits between the two readings these lines produce: 25.3% over last year's capital, and 24.4% over a denominator near $88B that appears on no statement. Switch the basis to lagged for the first of them.
The band is US technology WACC, Damodaran (NYU Stern), January 2026, held at one value and one date across all four worksheets so they can be read against each other, which makes it the wrong band for each taken alone. The same dataset puts restaurant and dining at 7.16%: on that band McDonald's FY2024 is 5.3 points short rather than 7.5, and FY2025 clears by 8.7 rather than 5.2. Cisco FY2000 is read against a 2026 band rather than the higher cost of capital of 2000, which is the conservative reading. No company publishes its own cost of capital. Concurrent divides by this year's spend, lagged by last year's; at Microsoft the two are ten points apart.
Working notes
Two choices decide the answer and the filing prints neither. The first is what counts as capital: cash capital expenditure is one line in the cash flow statement, and right-of-use assets obtained for finance leases are a different line in the lease note, $24.6B at Microsoft. Cisco is the extreme case. Its FY2000 cash capital expenditure was $1,086M while its invested capital rose $15.8B, because most of the capital arrived as stock issued for acquisitions. The second choice is which year's spend to divide by. Tick the lines and a quoted number moves ten points without anybody lying.
Not used here. Three figures travel with this argument and appear as no ledger line on this page, because none reconciles to a filing. Cisco's "$16 billion invested against a $426 million loss": the $16 billion reconciles, the loss does not, and FY2000 operating income was a positive $3,235M. Cisco's headline returns of "121% / 37%": no such figures appear in its filings. McDonald's "28% blended ROIC": McDonald's publishes no ROIC, and third-party estimates cluster at 17.5–19.0%. Where one of these is drawn on the bar it is drawn as a quoted mark and badged as one.
FILED lines are read off the filing linked beside them. DERIVED lines are arithmetic on those figures, using them as printed so the columns add up. ASSUMED lines would be stated assumptions, and none is used. THIRD PARTY and AUTHOR figures are drawn only as quoted marks on the bar. A marginal return below a hurdle is a fact about capital allocation with a one-year shelf life. Figures as filed to 9 September 2026.
Sources
Paper trail
Figures as filed to 9 September 2026.
- 01CME Group & Silicon Data · Compute futures, 5 Oct launch
- 02CNBC · Computing power becomes a tradable asset class
- 03NVIDIA · $500B+ infrastructure financing platform
- 04CoreWeave · Form 8-K
- 05NVIDIA · up to $105B behind OpenAI's Ohio lease
- 06Anthropic · $30B Azure commitment, $15B from Microsoft and NVIDIA
- 07OpenAI · Microsoft partnership update
- 08Meta · CoreWeave commitment
- 09Meta · Nebius capacity agreement
- 10Microsoft · Form 10-K, FY2026
- 11Cisco Systems · Form 10-K, FY2000
- 12Cisco Systems · Form 10-K, FY2001
- 13McDonald's · Form 10-K, FY2025
- 14Damodaran, NYU Stern · Cost of capital by industry sector
- 15BigBankTheory · How To Predict The AI Bubble Before Wall Street