(Reuters) - TikTok owner ByteDance has made preliminary plans for capital expenditure of 160 billion yuan ($22.74 billion) in 2026 to build artificial intelligence infrastructure, the Financial Times reported on Monday, citing people familiar with the matter.
Reuters could not immediately verify the report.
Global technology companies have ramped up debt issuance this year to record levels, as an intensifying race to build artificial intelligence capacity forces even cash-rich firms to borrow heavily to fund that investment.
According to Dealogic data, global tech companies issued $428.3 billion of bonds in 2025 through the first week of December. U.S. firms accounted for $341.8 billion, while European and Asian tech companies issued $49.1 billion and $33 billion, respectively.
Traditionally reliant on internal cash flows, large tech firms have increasingly turned to debt, as borrowing costs are low and investor demand is strong.
Michelle Connell, president at Portia Capital Management, said debt-funded AI capex reflects a structural shift, as rapid technological obsolescence and short chip lifespans force companies to reinvest continuously.
The heavy issuance, however, has begun to lift leverage and weaken coverage ratios for some firms, raising questions about how balance sheets would hold up if AI investments fail to deliver expected returns.
That said, the biggest tech firms are generally profitable, have large cash buffers and a number of them rank among the world's most valuable by market capitalisation.