Nvidia, a leading US-based technology company specializing in graphics processing units (GPUs), has announced plans to invest $1 billion in South Korea’s Naver, a prominent technology company. This significant investment aims to deepen the partnership between the two companies and build large-scale artificial intelligence (AI) infrastructure.
A Strategic Partnership in AI
The investment is part of a broader strategic partnership between Nvidia and Naver, which was first announced in June. The partnership focuses on building global AI factories that cater to the growing demand for sovereign AI. Sovereign AI refers to AI infrastructure and models that are operated under a country’s own laws and data controls.
Naver will issue approximately 7.24 million new shares to Nvidia through a private placement, giving the US chipmaker a stake of around 4.5% in the company. This investment would make Nvidia Naver’s third-largest shareholder.
The payment for the shares is scheduled for October 30. The investment will enable the two companies to combine Nvidia’s computing systems with Naver’s cloud, software, and AI services. This move would broaden their relationship beyond just supplying graphics processing units and cooperating on technology.
Full-Stack AI Capabilities
Naver’s full-stack AI capabilities, which include data centers, graphics processor clusters, cloud platforms, large language models, and consumer services, were a major factor in Nvidia’s decision to invest. Naver operates graphics processor infrastructure at over 20 locations across South Korea and plans to leverage this experience to expand its GPU-as-a-service and sovereign AI businesses.
Naver Cloud and Nvidia are also discussing an AI computing partnership that could involve joint development of global AI factory projects. This partnership would enable the two companies to work together on large-scale AI infrastructure projects.
AI Computing Partnership
The companies plan to combine Nvidia’s computing systems with Naver’s cloud, software, and AI services to create a comprehensive AI infrastructure. This would involve using Nvidia’s GPUs to power Naver’s AI services and cloud infrastructure.
Naver’s AI factory project aims to begin operations in the first half of 2027, with an initial capacity of 55 megawatts. The company plans to expand its capacity to 100 megawatts by the end of 2027 and reach 200 megawatts in 2028. The ultimate goal is to develop gigawatt-scale infrastructure.
Naver’s AI factory project would focus on serving the Asia-Pacific region, Europe, and the Middle East. The company is also seeking to improve shareholder returns by canceling approximately 4.9 million treasury shares valued at around 1.02 trillion won ($694.5 million). The shares are scheduled to be retired on August 3.
Naver’s Chief Executive Officer, Choi Soo-yeon, said that the investments by Nvidia and Brookfield would be an important turning point for the company’s future growth. Choi emphasized that Naver would work to secure AI factory customers and establish itself as a major global AI infrastructure provider.
Naver’s board chairman, Lee Hae-jin, said that the partnership would allow the company to take its data center technology and operating expertise to the global market. Lee stated that Naver would actively cooperate with companies around the world to create an AI ecosystem that respects the diversity of countries and communities.
Broader Implications
The investment by Nvidia in Naver has broader implications for the technology industry. It highlights the growing importance of AI infrastructure and the need for companies to invest in sovereign AI solutions. The partnership between Nvidia and Naver also underscores the increasing focus on AI computing and the need for companies to develop comprehensive AI infrastructure solutions.
The investment by Nvidia in Naver is a significant development in the technology industry and highlights the growing importance of AI infrastructure. The partnership between the two companies has the potential to create a comprehensive AI infrastructure solution that could cater to the growing demand for sovereign AI.
