ByteDance seeks almost $26 billion in its largest offshore loan
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This would be ByteDance’s largest offshore loan yet, at a time when the firm is boosting investments in artificial intelligence.
PHOTO: REUTERS
- ByteDance is in talks for a US$20 billion offshore loan, its largest yet, to boost artificial intelligence investments.
- ByteDance plans to invest up to US$70 billion in 2026 and US$100 billion in 2027 into AI infrastructure and data centres.
- The exact use of the US$20 billion funds is still unclear, as discussions are in early stages and details may change.
AI generated
ByteDance, the developer of TikTok, is in preliminary talks with banks for a borrowing of about US$20 billion (S$25.9 billion), people familiar with the matter said, in what would be the firm’s largest offshore loan yet at a time when it is boosting investments in artificial intelligence (AI).
The Beijing-based social media conglomerate has approached banks for the new-money loan, which could carry a three-year tenor, with the option to extend to as long as five years, said the people, who asked not to be identified discussing private matters. It is unclear how ByteDance would use the funds, the people said, adding that discussions are in early stages and details could change.
ByteDance did not respond to a request for comment.
ByteDance has joined an intensifying global push into AI. The Chinese tech firm is weighing plans to boost capital spending to as much as US$70 billion in 2026 to expand its data centres and other AI infrastructure. The figure could climb to US$100 billion in 2027 if economic and business conditions remain favourable.
Elsewhere, four US hyperscalers – Amazon.com, Alphabet, Microsoft and Meta Platforms – are planning as much as US$725 billion in capital spending in 2026, largely focused on AI data centre equipment.
Meanwhile, SoftBank Group recently secured a US$40 billion bridge loan to fund its investment in US tech giant OpenAI, and the lenders are now syndicating the debt to the wider market.
The last time ByteDance tapped the global loan market was in 2024, when it raised US$10.8 billion via more than 20 lenders, comprising international and Chinese banks. Citigroup, Goldman Sachs Group and JPMorgan Chase & Co were the coordinators of that borrowing, the proceeds of which were partly used to refinance a US$5 billion dual-tranche facility raised in 2021.
ByteDance has long been regarded as a prime initial public offering candidate, though it has given few signs it is in a hurry to do so. Over the past year, the Chinese company has exited businesses such as gaming, raising capital to focus on its core AI and social media arms. BLOOMBERG
