ByteDance is in early talks with banks to raise roughly $20 billion through a syndicated loan, Bloomberg reports, citing sources. If it goes through, this would be the company's largest offshore loan ever.
The loan is expected to have a three-year term with an option to extend to five years. The discussions are still in early stages, so terms and use of funds could change. ByteDance hasn't commented yet.
The company is considering boosting its capital spending this year to as much as $70 billion, mostly for data centers and AI infrastructure. Next year, that number could climb to $100 billion if the business and economic climate remain favorable.
For context, Amazon, Google parent Alphabet, Microsoft, and Meta — the four US tech giants — are planning a combined $725 billion in capital spending this year, also largely for AI data center equipment. Meanwhile, SoftBank recently secured a $40 billion bridge loan to help fund its investment in OpenAI.
ByteDance last tapped global loan markets in 2024, raising $10.8 billion from over 20 banks. Over the past year, it has sold off businesses like gaming to raise cash and refocus on its core AI and social media operations.