If the deal goes through, it will be the tech giant’s largest offshore loan to date, Forbes reports, citing Bloomberg.
The agency’s sources claim that ByteDance has approached banks with a proposal for a new three-year loan, extendable to five years. Recently, ByteDance has been significantly increasing its investments in artificial intelligence and related infrastructure.
The new borrowing is most likely needed for these purposes as well. In May, Bloomberg reported that the company was considering increasing its capital expenditures to $70 billion by 2026 to expand its network of data centers and other facilities necessary for AI development.
Under favorable economic conditions, this figure could rise to $100 billion as early as next year, the publication notes.
ByteDance last tapped the international debt market in 2024. At that time, the company raised $10.8 billion from more than 20 lenders, including both Chinese and international banks.
Although ByteDance has long been considered one of the most likely candidates for an IPO, the company is in no hurry to go public.
Instead, over the past year, it has been scaling back non-core business areas—particularly in the gaming industry—while focusing its resources on developing social platforms and artificial intelligence technologies.
