Nvidia invests $1 billion in Naver, becoming its No. 3 shareholder

Nvidia has made a strategic investment of $1 billion in South Korean internet giant Naver, securing a 4.5% stake and positioning itself as Naver's third-largest shareholder. This significant investment is set to bolster Naver's ambitions in the global artificial intelligence infrastructure market.

The funding follows a recent agreement between the two companies to collaborate on building a "gigawatt-scale" AI factory. Naver plans to utilize Nvidia's strategic investment, alongside funding from global investment firm Brookfield, to accelerate the development of its AI infrastructure. This includes securing the latest graphics processing units (GPUs) and data centers essential for its high-megawatt AI operations.

Naver announced the strategic investment through a third-party private placement, marking the first time in 22 years the company has pursued such a share allocation since its KOSPI listing in 2008. As part of its broader strategy to enhance shareholder value, Naver also approved a share buyback of approximately 4.9 million shares, valued at around 1 trillion won, to be cancelled on August 3.

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Investments from Nvidia and Brookfield will become an important turning point for Naver’s future growth.

This investment is a cornerstone of Naver's previously announced $10 billion AI infrastructure package. The company aims to begin generating revenue from its AI factory business in 2027, with plans to operate a 55-megawatt facility in the first half of that year, expanding it to 200 megawatts by 2028, and ultimately developing a gigawatt-scale platform. Naver's long-term vision is to address the growing demand for sovereign AI infrastructure across Asia-Pacific, Europe, and the Middle East.

Naver CEO Choi Soo-yeon expressed optimism, stating that the investments from Nvidia and Brookfield represent a crucial turning point for Naver's future growth. The company intends to expedite customer acquisition for the AI factory, aiming to establish itself as a key player in the global AI infrastructure space.

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make this watershed moment for Naver in which it stakes its place as a key player in the global AI infrastructure space.