Key Takeaways
- Strategic investment strengthens AI infrastructure and global technology collaboration
- Equity deal signals a shift toward capital-intensive data center expansion
- AI factory plan targets 200MW capacity with revenue from 2027
Through this NVIDIA Naver investment, NVIDIA has invested $1 billion in Naver through a new share issuance, marking a significant step in AI infrastructure development. The deal gives NVIDIA a 4.5% stake through 7,241,564 ordinary shares, positioning it as the third largest shareholder after the National Pension Service and BlackRock.
Strategic investment and ownership structure
The NVIDIA Naver investment has been executed through a third-party allotment of new shares, a method typically used to bring in strategic investors. This is the first such issuance by Naver since its listing in 2008, reflecting the scale and importance of the partnership.
The transaction is scheduled for completion by October 30. Following this, NVIDIA will hold a larger stake than Naver Chairman Lee Hae Jin, whose ownership stands at 6,129,725 shares. The National Pension Service remains the largest shareholder with 9.25%, while BlackRock holds 6.12%.
To balance the impact of new share issuance, Naver will cancel 4.9 million treasury shares worth about 1 trillion Korean won on August 3. This step is aimed at managing equity dilution and maintaining shareholder value.
The partnership strengthens collaboration between the two companies in AI computing and infrastructure, aligning with increasing global demand for advanced processing capabilities.
AI factory expansion and business transformation
Naver has also outlined plans to expand its AI infrastructure through a major data center initiative. The NVIDIA Naver investment is part of a broader strategy to secure funding and expand the company’s AI factory project. Naver has entered a pre-agreement with Brookfield to secure up to $9 billion in funding for its AI factory project.
The initiative focuses on building data centers and deploying tens of thousands of GPUs to support AI workloads. Brookfield will finance a significant portion of the project, while Naver will contribute the remaining investment. This collaboration also provides access to GPU supply through NVIDIA’s ecosystem.
The expansion will take place at Naver’s Sejong data center, known as Gak Sejong. The facility’s capacity is planned to increase from 55MW to 200MW by 2028, with a long-term goal of reaching 1GW. The company expects the AI factory to begin generating revenue in 2027.
This development marks a shift in Naver’s business model. Traditionally focused on search and advertising, the company is moving toward infrastructure-driven operations that require substantial capital investment and longer return cycles.
For entrepreneurs and business owners, the move highlights the growing importance of AI infrastructure as a core business segment. Companies are increasingly investing in computing capacity and data centers to support advanced applications and services.
The partnership between NVIDIA and Naver reflects a broader industry trend where technology firms are aligning resources to build scalable AI ecosystems. As demand for computing power continues to rise, infrastructure investments are expected to play a critical role in long-term growth strategies.
