Bloomberg reports that ByteDance is in early talks with banks to raise about $20 billion in a syndicated loan. If completed, it would be the company's largest offshore borrowing ever.
The loan is expected to have a three-year term with an option to extend to five years. The negotiations are still at an early stage, and terms and use of funds could change. ByteDance hasn't commented.
The TikTok parent is currently evaluating raising its capital expenditure to as much as $70 billion this year, primarily to expand data centers and AI infrastructure. If business and economic conditions remain favorable, that could climb to $100 billion next year.
For comparison, Amazon, Google parent Alphabet, Microsoft, and Meta — the four US tech giants — are planning a combined $725 billion in capital expenditure this year, also focused on AI data center equipment. SoftBank recently secured a $40 billion bridge loan to fund its investment in OpenAI.
ByteDance last tapped the global loan market in 2024, raising $10.8 billion from more than 20 Chinese and international banks. Over the past year, the company has divested businesses like gaming to focus on its core AI and social media operations.