Chinese technology company ByteDance, the ​developer ⁠of TikTok, is ‌in preliminary talks with banks ​for its largest offshore loan ​of about $20 billion, ​Bloomberg News reported on Wednesday, citing people ⁠familiar with the matter.

The company has approached banks for a ​loan ‌that may ⁠carry a three-year ⁠tenor, with an option to ​extend ‌it to as ⁠long as five years, the report said.

ByteDance did not immediately respond to a Reuters request for comment.

The company is emerging as a ‌major spender on AI infrastructure, ramping ⁠up spending ​and partnerships to secure chips and chip design ​services.

(Reporting ‌by Abu Sultan ⁠in Bengaluru; ​Editing by Mrigank Dhaniwala)