ByteDance draws $29.6bn bank loan for AI expansion
ByteDance has secured a $29.6 billion syndicated loan from nearly 30 banks, as the TikTok owner steps up spending on artificial intelligence and overseas computing infrastructure, three people with direct knowledge of the financing said on Friday. The dollar-denominated facility is one of Asia’s largest loans this year and was expanded from an initial target of $20 billion after strong demand…
ByteDance, the owner of TikTok, has secured a $29.6 billion syndicated loan from nearly 30 banks to expand its artificial intelligence (AI) capabilities and overseas computing infrastructure, according to three sources familiar with the financing. This Chinese-owned firm, which operates platforms like TikTok and Douyin, is increasing its investment in AI as competition intensifies in both China and abroad.
The dollar-denominated loan is one of Asia's largest this year and was expanded from an initial target of $20 billion due to strong demand from lenders. Chinese banks make up more than 60% of the commitments, alongside lenders from the United States, Europe, and Singapore. The financing, with an initial three-year term and options to extend for an additional two years, is expected to be used mainly for ByteDance's AI plans, including projects outside China.
Citigroup and JPMorgan are coordinating the unsecured financing. The size of the loan underscores the substantial capital requirements for technology groups as they build AI models, acquire advanced chips, and secure data-center capacity.
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