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.

ByteDance’s loan follows heavy investment across the AI sector.

A January 2025 report said the company planned to spend up to $12 billion on chips and overseas infrastructure, though ByteDance disputed the figures. Two months later, OpenAI secured a $40 billion SoftBank-led funding round, while ByteDance’s Doubao ranked fourth in an August survey of mobile AI usage. SoftBank later sold its $5.83 billion Nvidia stake to help finance its OpenAI investment.

Chinese developers are also competing on price. DeepSeek and Xiaomi sharply cut the cost of their AI models in May, widening the pricing gap with leading American systems.

ByteDance’s expansion comes as Beijing tightens its AI oversight. In July, the company removed customizable agents from Doubao ahead of new restrictions on humanlike AI services. Chinese officials have also discussed limiting overseas access to advanced domestic AI models, potentially complicating ByteDance’s international plans.