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Debt financed. Who is loaning money to these things? I feel there must be an other level of bubble there...

by Ekaros 1y ago

trollbridge 1y ago
It’s private money, like if you went and asked your uncle for a loan.
prepend 1y ago
Seems like a stable investment with returns locked in through 2049 unless Facebook defaults.
- Ekaros 1y ago
  2049... 20 years. So what exactly is being funded? Just the infra? Walls, power grid, cooling, security cameras and such. Or is any part of this the servers? Is there need for more money in say 2039?
  - williadc 1y ago
    They probably used some of the money for this: https://www.nextplatform.com/2025/10/02/meta-buys-rivos-to-accelerate-compute-engine-engineering/ https://www.nextplatform.com/2025/10/02/meta-buys-rivos-to-a...
- Forgeties79 1y ago
  Maybe I’m off the mark here but considering the state Facebook was in until AI put some wind back in its sales I would not say 20 years is a safe bet. Remember how much time and money they burned on Metaverse? They’ve got nothing to show for it. And wasn’t only like 1-2 years ago they stopped publishing DAU’s in favor of a more favorable metric? Someone feel free to correct me but they seemed to be just dipping their toes into a bit of a house of cards situation just a couple of years ago.
mcoliver 1y ago
Hence the big push currently ongoing to allow 401ks to invest in private markets
- victorbjorklund 1y ago
  Wouldnt that be pocket change?
  - googlywoogly 1y ago
    The exact value of all 401k isn't really known, but the average account value is estimated at ~135k, if (let's say) 200 million Americans have a 401k, that comes out to 27 trillion.
    - FanaHOVA 1y ago
      You really think the amount of savings in 401ks is the same size as the GDP of the whole country?
      - dmoy 1y ago
        It's not, but IRA plus 401k is about equal to GDP, yes (and if you add approximately equivalent defined contribution plans like 403b, tsp, etc, then it's more than GDP)
        consumer451 1y ago
        > It's not, but IRA plus 401k is about equal to GDP The economic vampires must salivate about this opportunity all night and day.
      - hollerith 1y ago
        That's comparing a rate of flow to a static amount. In other words, GDP is 27 trillion per year.
      - rsynnott 1y ago

Debt financed. Who is loaning money to these things? I feel there must be an other level of bubble there...

by Ekaros 1y ago

Debt financed. Who is loaning money to these things? I feel there must be an other level of bubble there...

trollbridge 1y ago

It’s private money, like if you went and asked your uncle for a loan.

prepend 1y ago

Seems like a stable investment with returns locked in through 2049 unless Facebook defaults.

Ekaros 1y ago
2049... 20 years. So what exactly is being funded? Just the infra? Walls, power grid, cooling, security cameras and such. Or is any part of this the servers? Is there need for more money in say 2039?
- williadc 1y ago
  They probably used some of the money for this: https://www.nextplatform.com/2025/10/02/meta-buys-rivos-to-accelerate-compute-engine-engineering/ https://www.nextplatform.com/2025/10/02/meta-buys-rivos-to-a...
Forgeties79 1y ago
Maybe I’m off the mark here but considering the state Facebook was in until AI put some wind back in its sales I would not say 20 years is a safe bet. Remember how much time and money they burned on Metaverse? They’ve got nothing to show for it. And wasn’t only like 1-2 years ago they stopped publishing DAU’s in favor of a more favorable metric? Someone feel free to correct me but they seemed to be just dipping their toes into a bit of a house of cards situation just a couple of years ago.

mcoliver 1y ago

Hence the big push currently ongoing to allow 401ks to invest in private markets

victorbjorklund 1y ago
Wouldnt that be pocket change?
- googlywoogly 1y ago
  The exact value of all 401k isn't really known, but the average account value is estimated at ~135k, if (let's say) 200 million Americans have a 401k, that comes out to 27 trillion.
  - FanaHOVA 1y ago
    You really think the amount of savings in 401ks is the same size as the GDP of the whole country?
    - dmoy 1y ago
      It's not, but IRA plus 401k is about equal to GDP, yes (and if you add approximately equivalent defined contribution plans like 403b, tsp, etc, then it's more than GDP)
      - consumer451 1y ago
        > It's not, but IRA plus 401k is about equal to GDP The economic vampires must salivate about this opportunity all night and day.
    - hollerith 1y ago
      That's comparing a rate of flow to a static amount. In other words, GDP is 27 trillion per year.
    - rsynnott 1y ago