ByteDance seeks $20 billion offshore loan as AI infrastructure spending rises

Chinese technology company ByteDance is in preliminary discussions with banks for an offshore loan of about $20 billion, Bloomberg News reported on Wednesday, citing people familiar with the matter.

If completed, the facility would be the TikTok parent company’s largest offshore loan.

According to the report, ByteDance has approached banks for a loan that may carry a three-year tenor, with an option to extend the facility to as long as five years.

ByteDance did not immediately respond to a Reuters request for comment.

The talks come as the company increases spending on artificial intelligence infrastructure.

ByteDance has been expanding its investment and partnerships to secure chips and chip design services, as technology companies compete to build computing capacity for artificial intelligence products and services.