ByteDance secured a $29.6 billion loan from banks eager to bet on its AI push
Nearly 30 banks participated in the deal, which grew from an initial $20 billion target after strong lender demand
Hong Kong: ByteDance has secured a US$29.6 billion loan from nearly 30 banks, driven by the company's focus on AI development, according to three people familiar with the matter. The loan, the second-largest in Asia this year after SoftBank's US$40 billion investment in OpenAI, is being coordinated by Citigroup and JPMorgan and is set to be signed shortly.
The facility, initially targeted at US$20 billion, has been expanded due to the enthusiasm of lenders. Over 60% of the loan has been subscribed by Chinese banks, with Chinese, U.S., European, and Singaporean institutions participating in the financing. ByteDance plans to use the funds for general corporate purposes, primarily supporting its AI-related initiatives.
The loan is unsecured, reflecting lenders' strong confidence in the company's creditworthiness. ByteDance is investing in AI data centers in Southeast Asia and competing with both local and global hyperscalers in AI-related projects.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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