ByteDance in talks for $20 billion offshore loan

ByteDance is in preliminary talks with banks for a roughly $20 billion new-money offshore loan. The proposed facility would run for three years with an option to extend by up to two years. If completed, it would be the company’s largest offshore borrowing.

The discussions are at an early stage and terms could change. ByteDance has not disclosed a final use of proceeds.

Company executives are increasing spending and forming partnerships to secure chips and chip design services. The financing would support expansion of AI computing capacity and data-centre infrastructure.

ByteDance has considered raising capital spending to about $70 billion this year to expand data centres and other AI-related assets. That figure could rise to about $100 billion next year if business conditions remain favorable.

The company previously raised $10.8 billion in offshore debt in 2024 from more than 20 lenders, in a transaction coordinated by Citigroup, Goldman Sachs and JPMorgan. That borrowing partly refinanced a $5 billion facility raised in 2021.

Major technology firms are increasing capital spending on AI infrastructure. Four large cloud providers have outlined combined capital plans near $725 billion this year focused on data-centre equipment. Lenders have also provided large syndicated loans for AI-related deals, including a recent $40 billion bridge loan supporting an investment in an AI developer.

Over the past year ByteDance has reduced operations in non-core areas such as gaming. The company remains a widely discussed candidate for an initial public offering but has shown little urgency to list.

There is no certainty the $20 billion facility will be finalized on the terms currently under discussion.