Naver Unveils AI Factory Contract Structure: "Receives NVIDIA GPUs, Eases Financial Burden via Brookfield SPV"

NVIDIA to Invest $1 Billion,

Brookfield Up to $9 Billion

NAVER has unveiled the detailed contract structure for its Artificial Intelligence (AI) Factory business, based on NVIDIA's $1 billion (approximately 1.4 trillion won) equity investment and Brookfield's planned infrastructure investment of up to $9 billion. NAVER will secure a stable supply of graphics processing units (GPUs) from NVIDIA for building and operating data centers and intends to ease its financial burden from large-scale investments through a special purpose vehicle (SPV) established by Brookfield.

According to NAVER's reference material on 'NAVER AI Factory Phase 1' disclosed on August 3, NVIDIA will make a $1 billion equity investment in NAVER, and NAVER will have a 100% subsidiary to supervise the AI Factory operations and overall AI computing business. Brookfield will invest up to $9 billion to establish the SPV, which will purchase or own the GPUs and data center equipment necessary for operating the AI Factory.

The plan currently being discussed is for NAVER’s AI Factory operating company to procure computing resources from the SPV and pay fees based on usage and other factors. NAVER is also considering acquiring a minority stake in the SPV to secure a stable supply of computing resources.

NAVER will lead in securing land for data centers, as well as in their construction and operation, with NVIDIA participating as the main supplier of GPUs. NAVER ultimately aims to build gigawatt (GW)-level infrastructure: by the first half of next year, the company plans to establish 55MW of capacity, increase the cumulative capacity to 100MW by the end of next year, and reach a cumulative target of 200MW by 2028.

With global AI infrastructure demand rising rapidly, NAVER explained that, through its strategic partnership with NVIDIA, it plans to jointly build and operate a massive global AI Factory, thereby seizing business opportunities in the global AI compute market and securing new revenue streams.

 

The SPV created by Brookfield will directly raise and execute up to $9 billion needed to secure GPUs and data centers. Instead of NAVER purchasing all facilities with its own funds, it will pay the SPV for computing usage, reducing NAVER’s financial burden.

NAVER has selected Brookfield as the exclusive preferred negotiation partner for 12 weeks, and if negotiations are completed within this period, Brookfield will be chosen as the final financing partner. In its disclosure, NAVER identified challenges including uncertainty in the regulatory environment, such as securing local data center sites and obtaining approvals in each country, possible delays in securing power infrastructure, and fluctuations in the supply and demand for global AI infrastructure.

A NAVER spokesperson said, "In the future, starting with the hyperscale data center ‘Gak Sejong’ as an initial base, we plan a phased global expansion beyond the Asia-Pacific region to Europe, the Middle East, and beyond. However, there is a possibility that conditions may change or schedules may be delayed in the process of finalizing detailed contract terms."

This content was produced with the assistance of AI translation services.