Naver Unveils AI Factory Deal with Nvidia and Brookfield

Naver, a South Korean tech giant, has unveiled the contract structure for its large-scale artificial intelligence (AI) factory project. The plan involves collaboration with Nvidia and Brookfield Asset Management to minimize financial risk from building massive infrastructure.

The core of Naver's strategy is to use a special purpose vehicle (SPV), which will directly purchase and own the graphics processing units (GPUs) and data center facilities required to operate the AI factory. This approach is expected to significantly lower the risk associated with large-scale investment.

Nvidia will make a $1 billion equity investment in Naver as a strategic partner, while Brookfield will contribute $9 billion to establish the SPV. The AI factory operating company, which Naver will own 100%, will lease computing resources from the SPV and provide full-stack computing services to end-customer companies.

Naver has selected Brookfield as its exclusive preferred negotiating partner for 12 weeks and is conducting detailed negotiations. It also plans to acquire a minority stake in the SPV to ensure stable resource procurement.