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Radar · Capital and credit · T2 · 2029 · WARNING

A listed neocloud hits a credit event by 2029

By 2029-12-31 at least one US-listed GPU cloud provider (CoreWeave, Nebius, or another SEC registrant whose primary business is renting AI accelerators) discloses a payment default, covenant breach, distressed debt exchange, or bankruptcy filing.

WARNINGdownindicators off trackregistered 2026-09-08CoreWeaveNebius

ClaimBy 2029-12-31 at least one US-listed GPU cloud provider (CoreWeave, Nebius, or another SEC registrant whose primary business is renting AI accelerators) discloses a payment default, covenant breach, distressed debt exchange, or bankruptcy filing.
Consensus (implied)45%implied from MarketWise, citing Bloomberg CDS data on CoreWeave · 2026-08-25
Distance+1.05log-odds · clearly above consensus
My confidence70%80% CI 55–82%
Engine87%+17 pts vs me · stacked-fixed-weights
Falsifies ifNo listed neocloud discloses a qualifying event by 2029-12-31 and all 2026-2028 maturities are refinanced on schedule.
HorizonDecember 31, 20291169 days · by end-2029 · milestone ladder

Why it matters

Neoclouds are the leveraged middle of the AI capital stack: they borrow against GPUs with five-year useful lives to serve contracts that often run shorter, and they lean on a handful of tenants. The first disclosed credit event tests whether GPU collateral holds value and whether the vendor and hyperscaler backstops are real. Lenders to every private data center deal will reprice off that answer.

Probability over time

0%25%50%75%100%09-0709-0709-0809-1209-1209-1909-1909-2610-0310-1010-1710-1710-1810-1810-19deadline

Registered at 70% on September 8, 2026. Engine repriced 14 times; now 87%.

Milestone ladder

Dated rungs. Each is scored on its own; the thesis does not get credit for the ladder until the rungs land.

0%50%100%2027-12-31m160%2028-12-31m250%

filled bar · my probabilityhollow dot · engineamber date · due, awaiting adjudication

m1 · 2027-12-31 · 60% · A listed neocloud discloses a covenant waiver, amendment, or forbearance agreement on debt of $500 million or more.

m2 · 2028-12-31 · 50% · A nationally recognized rating agency rates a listed neocloud's senior debt at CCC+ or lower.

Leading indicators

Registered thresholds. Status is computed from the latest public reading.

CoreWeave total debt (long-term debt plus current portion)off track

24.9B usd

45B30B

on track >= 45B · off < 30Bsec-xbrl ↗

series as of 2026-03-31

ICE BofA US High Yield Index option-adjusted spreadbetween

3.23 percent

4.53

on track >= 4.5 · off < 3fred ↗

series as of 2026-10-15

CoreWeave quarterly interest expenseoff track

558M usd

900M600M

on track >= 900M · off < 600Msec-xbrl ↗

series as of 2026-06-30

What would move me

Would raise my number

  • A neocloud's largest customer disclosed at more than 50% of backlog while that customer's own funding slips.
  • Secondary H100 rental prices falling below the implied debt-service cost per GPU-hour.
  • A new neocloud loan priced above 10% all-in, or a failed syndication reported in an 8-K.

Would cut it

  • Backlog conversion to revenue above 40% a year with interest coverage improving for two quarters.
  • A hyperscaler or chip vendor acquiring or guaranteeing a neocloud's debt outright.
  • Refinancing of 2027 maturities completed by mid-2027 at spreads below 400 basis points.

Council · 48%

6 personas on one model (openai/gpt-5.6-sol); other vendors were unavailable this run, so read this as one model's persona-averaged view.

54%

grid-and-power-planner · openai/gpt-5.6-sol

My reference class is the supplied single-issuer CDS-implied five-year default risk. Converting 0.50 over five years to a constant annual hazard of 0.129 gives about 0.36 through the remaining 3.2 years. Qualifying covenant breaches are broader than CDS default, and additional registrants raise any-issuer risk. CoreWeave’s debt increase from $7.9 billion to $24.9 billion and quarterly interest expense of $0.558 billion sharpen refinancing and covenant risk. Offsets are benign high-yield spreads, demonstrated financing access, exclusions for pre-breach waivers, and strict EDGAR and principal-business tests. I reject the 0.98 structural prior because debt drift does not estimate event hazard. Net: 0.54, below 0.70.

46%

semiconductor-supply-chain-analyst · openai/gpt-5.6-sol

Reference class: highly leveraged single-B/CCC technology issuers. Compounding a 0.50 five-year CDS-implied default probability over roughly 3.2 remaining years gives about 0.36 under constant hazard; the risk-neutral CDS figure may overstate physical default risk. CoreWeave’s debt rising from $7.9 billion to $24.9 billion and quarterly interest expense reaching $558 million materially increase refinancing and covenant risk. The maintenance covenant and broader issuer set add pathways, but pre-breach waivers, ordinary amendments, downgrades, and dilution do not qualify. Benign broad high-yield spreads and successful 9% financing indicate continued market access. I discount the 0.98 debt-drift prior as uncalibrated to qualifying events.

46%

enterprise-cio · openai/gpt-5.6-sol

Reference class: highly leveraged speculative-grade infrastructure providers facing rapid capex, refinancing, and technology-obsolescence risk. A roughly 0.13 annual CoreWeave hazard, compounded over 3.2 years, gives about 0.36; additional qualifying registrants provide a modest portfolio uplift. Debt rose from $7.9 billion to $24.9 billion in five quarters, while quarterly interest expense reached $558 million, materially increasing execution risk. Offsetting this, broad high-yield spreads remain moderate and the cited 2026 financing demonstrates continued market access. The EDGAR rule is narrower than generic CDS default: pre-emptive waivers, amendments, downgrades, and dilution do not count. I therefore discount both the 0.70 forecast and the mechanically debt-driven 0.98 prior.

48%

credit-analyst · openai/gpt-5.6-sol

Using the quoted CDS as the main reference class, a 0.50 five-year default probability implies roughly 0.36 through the 3.2-year horizon under constant annual hazard. The broader covenant-breach trigger and additional eligible issuers raise that estimate. CoreWeave’s debt growth from $7.9 billion to $24.9 billion and rising interest expense materially increase refinancing and covenant risk. Offsetting this, the 3.23-point broad high-yield spread, successful loan placement, and shorter horizon indicate functioning refinancing markets. I discount the 0.98 structural prior because extrapolating debt growth does not model liquidity, covenant headroom, or refinancing. The forecaster’s 0.70 appears too high relative to the horizon-adjusted market signal.

47%

geopolitics-policy-analyst · openai/gpt-5.6-sol

My reference class is market-implied default hazards for highly leveraged speculative-grade issuers. A 50% five-year default probability corresponds to roughly 0.13 annual hazard and about 0.36 cumulative risk through year-end 2029. Rapid debt growth to $24.9 billion and quarterly interest expense reaching $558 million justify an upward adjustment; qualifying covenant breaches also encompass some events short of CDS default, and multiple eligible issuers modestly increase risk. Offsetting this, broad high-yield spreads remain benign, recent financing demand indicates continued market access, and other eligible providers may have stronger balance sheets. The 0.98 structural prior mechanically extrapolates debt and is not calibrated to the resolution event. Thus 0.70 appears too high.

46%

superforecaster-statistician · openai/gpt-5.6-sol

Base rate used: about 0.20 for a speculative-grade, capital-intensive borrower experiencing a qualifying default or restructuring within roughly three years. The supplied five-year CDS estimate of 0.50 converts to about 0.36 over the remaining 3.2 years under constant hazard, before its reported narrowing. Debt rose from $7.9 billion to $24.9 billion and quarterly interest expense to $558 million, supporting an above-base adjustment; multiple eligible issuers add some union probability. Offsetting this, broad high-yield spreads are benign, financing cleared, and the rule excludes proactive waivers, amendments, dilution, and downgrades. The EDGAR deadline and principal-business test add resolution risk. Thus 0.70 looks overconfident; the 0.98 debt-drift prior is not a calibrated default model.

Engine prior

98% from drift-gbm-terminal:li-1. P(indicator li-1 satisfies onTrack >= 45000000000.0 at 2029-12-31); drift +0.918/yr, vol 0.243/sqrt(yr) from 6 points; proxy for the thesis, not its rule