ByteDance secures $29.6 billion loan in AI push, sources say

ByteDance, the owner of popular social media apps Douyin and TikTok, has secured a $29.6 billion loan from nearly 30 banks, according to sources. The Chinese social media giant's bet on AI development has driven strong interest from lenders, making it the second-largest loan made in Asia this year after SoftBank's $40 billion investment in OpenAI.

Chinese, U.S., European, and Singaporean banks are participating in the financing, coordinated by Citigroup and JPMorgan. ByteDance increased the loan from an initial target of $20 billion after lenders showed overwhelming interest. The three-year loan, with options to extend for two more years, is unsecured, reflecting lenders' confidence in ByteDance's creditworthiness.

The funds will mainly support the company's AI-related plans, with ByteDance planning to use the financing to fund projects outside China, especially in AI data centers.