TikTok's Parent Company Just Borrowed $30 Billion to Go All-In on AI

In brief

• TikTok parent company ByteDance secured a $29.6 billion loan from nearly 30 Chinese and international banks, according to Reuters.
• Strong lender demand prompted the company to raise the facility from an initial target of $20 billion.
• Sources said the money will mainly support AI projects outside China.

TikTok parent ByteDance has secured a $29.6 billion loan from nearly 30 banks as it increases spending on artificial intelligence.

According to a report by Reuters, citing people with direct knowledge of the transaction, lender demand allowed ByteDance to raise the dollar-denominated facility from an initial $20 billion target.

Banks from China, the United States, Europe, and Singapore are participating in the loan, coordinated by Citigroup and JPMorgan, the report said. Chinese banks subscribed to more than 60% of the total, one source said.

"It is very rare to see such a mega loan unsecured," ​one source told Reuters. "The ​banks practically are counting purely ⁠on ByteDance's name."

ByteDance reportedly told lenders the three-year loan, which can be extended by two years, was for general corporate purposes. However, Reuters’ sources said it would mainly fund overseas AI projects, including data center capacity in Southeast Asia.