NVIDIA has agreed to acquire a $1 billion equity stake in South Korean internet giant Naver, a move that will see the two companies jointly advance Naver's AI Factory initiative. The investment, disclosed on August 3, is part of a broader collaboration that includes Canadian alternative asset manager Brookfield, which is committing $9 billion to build out the necessary infrastructure.
The partnership centers on Naver's AI Factory project, which was first outlined in June as part of a 1GW roadmap. The initial phase, a 200MW deployment, will serve as the foundation for the venture. Under the agreement, Naver will establish a wholly owned subsidiary dedicated to operating the AI factory, overseeing the company's AI computing business. NVIDIA's $1 billion investment will be directed toward this entity, securing Naver's access to a stable supply of graphics processing units (GPUs) at a time when global demand for AI compute capacity has outpaced supply.
Brookfield will play a critical role by setting up a special purpose vehicle (SPV) to finance the acquisition of GPUs and data center facilities required for the AI factory's operations. The SPV's total investment is set at $9 billion, approximately 12.78 trillion South Korean won. Naver will draw computing resources from the SPV and pay usage-based fees, a structure that allows the company to avoid the massive upfront capital expenditure typically associated with building AI infrastructure. The Brookfield financing is expected to be finalized during a 12-week negotiation period, with Naver prepared to resume talks with alternative investors should the deal fall through.
Naver plans to monetize the AI factory by selling computing capacity to external customers, creating a new revenue stream aligned with the surging demand for AI services. The company is also exploring the option of acquiring a minority stake in Brookfield's SPV, further deepening its involvement in the infrastructure layer of the project.
The NVIDIA investment carries strategic weight beyond capital. By bringing NVIDIA on as a shareholder, Naver expects to stabilize its GPU supply chain, a critical advantage in an AI ecosystem where access to advanced chips has become a key competitive differentiator. For NVIDIA, the deal expands its GPU ecosystem through a partnership with one of South Korea's leading information technology companies, reinforcing its position in the rapidly growing Asian AI market.
Industry observers view the arrangement as a model for future AI infrastructure projects, where technology providers, operators, and financiers collaborate to share the financial burden of building large-scale compute facilities. The combination of NVIDIA's hardware, Naver's operational expertise, and Brookfield's capital could serve as a blueprint for similar ventures across the region.