Naver and Nvidia are currently in negotiations with Brookfield, a U.S.-based private-equity firm, to secure as much as $9 billion for a significant project. This initiative includes Nvidia's planned investment of approximately $1 billion in Naver, a South Korean internet powerhouse, aimed at funding an artificial intelligence data center. This collaboration signifies a strengthened alliance between the two firms in the realm of AI.
The proposed investment is expected to facilitate a larger, multi-billion dollar expansion of AI infrastructure within South Korea. The companies disclosed in a joint statement during an AI conference held in San Francisco over the weekend that they intend to create a large-scale, multi-tenant AI cloud infrastructure capable of supporting future AI ventures in both South Korea and the United States.
According to the statement, Brookfield has engaged in a non-binding agreement to potentially contribute up to $9 billion, while Naver is set to cover the remaining financial needs for the initiative.
In a regulatory filing made on Monday, Naver announced plans to raise around 1.481 trillion won, roughly equivalent to $1.01 billion, through the issuance of new shares to Nvidia as part of the initial funding. The Korean company will release 7.2 million new shares priced at 204,500 won each in a third-party allotment, with Nvidia as the sole subscriber. Upon completion of this transaction, Nvidia is expected to acquire a 4.5% ownership stake in Naver.
