By Kashmira Konduparty
ByteDance, the Chinese technology company behind TikTok, is seeking a loan of up to $20 billion, a move that would mark the largest offshore borrowing by a Chinese company if completed, according to a report by Bloomberg News.
The financing effort comes as ByteDance ramps up spending on artificial intelligence infrastructure and seeks to strengthen its position in the increasingly competitive global AI market.
Bloomberg reported that the company has approached a group of international banks regarding the potential loan. The financing package could surpass the previous record for offshore borrowing by a Chinese firm and would rank among the largest corporate loan deals globally.
ByteDance has emerged as one of China’s leading artificial intelligence developers, investing heavily in AI models, cloud computing capabilities and data center construction. The company has been expanding beyond its social media roots as competition intensifies among technology firms seeking dominance in generative AI.
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The company is reportedly considering using the proceeds to support overseas data center projects, AI-related investments and other corporate initiatives. The discussions are ongoing and the size and structure of the financing could change before a final agreement is reached.
The loan effort comes as Chinese technology companies accelerate investments in artificial intelligence to compete with U.S. rival including OpenAI, Google and Meta. AI development has become a strategic priority for both governments and corporations, leading to a surge in spending on computing infrastructure and advanced semiconductor technologies.
ByteDance has increasingly focused on artificial intelligence through its Doubau chatbot and a series of large-language models developed for Chinese and international markets. The company has also expanded its hiring of AI researchers and engineers as demand for advanced AI services continues to grow.
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The proposed financing would arrive at a time when Chinese firms face greater scrutiny from international regulators and investors amid ongoing geopolitical tensions between Beijing and Washington. Despite those challenges, major Chinese technology companies have continued to attract significant financing for AI-related projects.
ByteDance remains one of the world’s most valuable private technology companies. While TikTok continues to be its best-known product internationally, the company has broadened its portfolio to include e-commerce, enterprise software and artificial intelligence products.
Neither ByteDance nor the banks involved publicly commented on the reported financing discussions.