ByteDance weighs biggest-ever offshore borrowing to support AI expansion

ByteDance, the Chinese technology company behind TikTok, is in preliminary talks with banks for what could be its largest offshore loan to date, Bloomberg News reported on Wednesday.

The company is seeking a new-money facility of about $20 billion, with a proposed tenor of three years and an option to extend it by up to two years.

The discussions remain at an early stage, and the terms could still change.

It is also not yet clear how ByteDance plans to use the proceeds.

ByteDance ramps up AI infrastructure ambitions

The reported financing talks come as ByteDance steps up spending on artificial intelligence infrastructure.

The Beijing-based social media company is emerging as a major investor in AI-related capacity, increasing spending and partnerships to secure chips and chip design services.

ByteDance is weighing plans to raise capital spending to as much as $70 billion this year to expand data centres and other AI infrastructure, as cited by Bloomberg.

That figure could rise to $100 billion next year if economic and business conditions remain favourable.

The possible offshore borrowing would align with that broader investment push.

While the exact use of funds has not been disclosed, the report says the money would help ByteDance increase spending on AI and data centres.

ByteDance has increasingly joined a wider global race among technology companies to expand AI capabilities.

Large investments in computing infrastructure, chips, and data centres have become central to those efforts, and ByteDance appears to be positioning itself more aggressively in that space.

The borrowing plan would follow the previous $10.8 billion loan

If completed, the proposed $20 billion loan would surpass ByteDance’s previous visit to the global loan market.

The last time the company raised offshore debt was in 2024, when it secured $10.8 billion from more than 20 lenders, including international and Chinese banks.

The borrowing was coordinated by Citigroup Inc., Goldman Sachs Group Inc., and JPMorgan Chase & Co.

Part of the proceeds was used to refinance a $5 billion dual-tranche facility that ByteDance had raised in 2021.

That earlier fundraising highlighted ByteDance’s access to global lenders and its ability to tap large pools of financing.

The latest talks, if they advance, would mark another major financing move as the company weighs a heavier investment in technology infrastructure.

Global tech groups intensify AI spending

ByteDance’s financing discussions come against the backdrop of a broader wave of AI spending across the technology sector.

The report notes that four US hyperscalers, Amazon.com Inc., Alphabet Inc., Microsoft Corp., and Meta Platforms Inc., are planning a $725 billion in capital spending this year, largely focused on AI data centre equipment.

The wider financing environment is also reflecting that trend.

The SoftBank Group Corp. recently secured a $40 billion bridge loan to support its investment in OpenAI, with lenders now syndicating that debt to the broader market.

ByteDance’s possible offshore loan would underline how aggressively major technology companies are moving to fund AI expansion.

IPO candidate remains focused on core businesses

ByteDance has long been viewed as a potential initial public offering candidate, though the company has shown little urgency to pursue a listing.

Over the past year, ByteDance has exited businesses such as gaming, a move that has helped it raise capital and sharpen its focus on core AI and social media operations.

For now, however, attention appears to be shifting toward how the company funds its next phase of expansion.

ByteDance’s reported plan to seek a record offshore loan suggests the company is looking to preserve financial flexibility while committing more capital to AI and digital infrastructure.

The talks are still in their early stages, and there is no certainty that the company will proceed on the terms currently under discussion.

But if the deal moves ahead, it would mark ByteDance’s biggest offshore borrowing yet and reinforce the scale of its AI ambitions.