Nvidia Invests $1 Billion in Naver Amid Growing AI Demand

Nvidia has invested $1 billion in Naver, a Canadian alternative investment management company Brookfield has also joined forces with the tech giant to accelerate its artificial intelligence (AI) business. The partnership will establish an AI factory operator that is 100% owned by Naver, which will oversee the company's AI computing business. Brookfield's Special Purpose Corporation (SPV) will secure the necessary funds for the facility, totaling $9 billion.

The AI Factory, announced in June, will receive computing resources from Brookfield's SPV and pay costs according to usage. This arrangement is expected to save Naver enormous initial investment funds. Nvidia's equity investment has enabled Naver to maintain a stable supply chain for graphics processing units (GPUs), which are crucial for AI operations. The GPU market has become increasingly difficult to navigate due to soaring AI demand.

Nvidia will also expand its GPU ecosystem through Naver, one of Korea's leading information technology companies. The partnership is expected to bring significant benefits to both parties and contribute to the development of the global AI industry.