ByteDance Secures $29.6 Billion Loan for AI Expansion

ByteDance Ltd. secured a $29.6 billion dollar-denominated loan, the second-largest borrowing of its kind in Asia this year. The company originally sought $20 billion but increased the facility size after receiving strong commitments from banks. The financing was coordinated by Citigroup Inc. and JPMorgan Chase & Co.

The loan carries a three-year tenor with a potential extension to five years and an opening margin of 68 basis points over the Secured Overnight Financing Rate. ByteDance intends to use the proceeds for general corporate purposes, with a specific focus on accelerating its artificial intelligence capabilities.

To support this growth, the company is considering raising its annual capital spending to $70 billion. This investment would fund the expansion of data centers and AI infrastructure, mirroring the aggressive spending patterns of U.S. hyperscalers. The deal remains unsigned as banks finalize their allocations.