Nvidia is taking another major step in its global artificial intelligence expansion, announcing a planned $1 billion investment in South Korean technology giant Naver as the two companies accelerate the development of large-scale AI infrastructure in Asia.
The investment will give Nvidia a 4.5% ownership stake in Naver, strengthening a strategic partnership that goes beyond chips and hardware to focus on building next-generation AI computing capacity. The deal also marks one of Nvidia’s most significant equity investments in an AI ecosystem outside the United States.
A Strategic Bet on AI Infrastructure
According to regulatory filings, Naver will raise approximately 1.481 trillion won (around $1.01 billion) by issuing 7.2 million new shares to Nvidia through a third-party allotment. Once the transaction closes, Nvidia will become one of Naver’s largest shareholders with a 4.5% stake.
The fresh capital will primarily finance Naver’s ambitious AI Factory project, which includes the construction of a massive AI data center in South Korea alongside broader computing infrastructure designed to support advanced AI applications.
Rather than serving as a conventional cloud facility, the project is intended to provide high-performance computing resources capable of training and deploying increasingly sophisticated AI models.
Bigger Plans With Brookfield
The investment is only the first phase of a much larger initiative.
Nvidia and Naver are also working alongside global investment firm Brookfield on a broader AI infrastructure program that could attract up to $9 billion in funding. Together, the companies aim to build gigawatt-scale, multi-tenant AI cloud infrastructure capable of supporting startups, enterprises and AI developers across South Korea and the United States.
The partnership combines each company’s strengths:
- Naver contributes its AI software expertise and local data-center capabilities.
- Nvidia provides its industry-leading accelerated computing platforms and GPUs.
- Brookfield brings global experience in financing and operating large-scale digital infrastructure.
Building Korea’s Sovereign AI Future
The announcement highlights the growing importance of sovereign AI—the concept of nations developing AI infrastructure, data resources and language models under domestic control rather than relying entirely on foreign cloud providers.
Naver has been one of South Korea’s leading champions of sovereign AI, developing its own large language models and expanding domestic AI capabilities.
Nvidia CEO Jensen Huang said the collaboration is designed to create AI infrastructure capable of supporting Korean startups and industries at national scale, reinforcing the country’s ambitions to become a global AI leader.
AI Data Center to Expand Rapidly
The AI factory is expected to grow in phases over the next several years.
Current plans call for the facility to reach:
- 55 megawatts of computing capacity during the first half of 2027.
- 100 megawatts by the end of 2027.
- 200 megawatts by 2028.
The long-term vision extends beyond that, with Naver planning to expand toward gigawatt-scale AI infrastructure, positioning the project among the region’s largest AI computing hubs. Nvidia will supply the advanced GPUs powering the facility.
Strengthening Nvidia’s Global AI Ecosystem
The investment also fits into Nvidia’s broader strategy of expanding beyond semiconductor sales to become a central player in the world’s AI infrastructure.
Over the past year, the company has announced multiple partnerships focused on AI factories, sovereign AI initiatives and hyperscale computing projects across different regions. South Korea has emerged as one of Nvidia’s strategic markets as governments and enterprises race to build domestic AI capabilities.
By investing directly in Naver rather than simply supplying hardware, Nvidia is deepening its long-term role in the country’s AI ecosystem.
Market Responds Positively
Investors welcomed the announcement.
Naver’s shares climbed more than 8%–10% following news of Nvidia’s planned investment, reflecting optimism that the partnership could strengthen the company’s AI competitiveness while accelerating its infrastructure ambitions. Naver also announced plans to cancel treasury shares worth more than 1 trillion won, a move aimed at enhancing shareholder value.
Why It Matters
As countries increasingly prioritize domestic AI capabilities, large-scale computing infrastructure is becoming as strategically important as the AI models themselves.
Nvidia’s investment in Naver signals that the next phase of the AI race will be driven not only by breakthrough algorithms but also by ownership of the infrastructure needed to power them. By combining capital, advanced GPUs and sovereign AI expertise, Nvidia, Naver and Brookfield are positioning South Korea to play a larger role in the global AI economy while strengthening Nvidia’s influence in one of the world’s fastest-growing AI markets.
