NAVER Signs KRW 12 Trillion AI Infrastructure Deal with Brookfield, Accelerates AI Factory Push

"Promptly complete the process for a third-party allotment of new shares"

NAVER has signed an agreement with global asset manager Brookfield to secure computing infrastructure, meeting a precondition for NVIDIA's strategic equity investment and accelerating its global AI factory business.

NAVER disclosed on October 27 that it had signed an agreement with Brookfield to secure computing infrastructure worth $9 billion (approximately KRW 12 trillion), thereby meeting a precondition for NVIDIA's strategic equity investment. The company said it plans to promptly complete the process for a third-party allotment of new shares to NVIDIA. Once the process is complete, NVIDIA will become NAVER's third-largest shareholder.

This will also bring the 1-GW-scale global AI factory project, jointly pursued by NAVER, NVIDIA and Brookfield, into the full-scale execution phase.

In July, NAVER announced a $10 billion (approximately KRW 13.3 trillion) project with NVIDIA and Brookfield to build a global AI factory. The plan called for NVIDIA to invest $1 billion in NAVER through an equity stake, while Brookfield would develop AI computing infrastructure worth up to $9 billion.

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Brookfield will establish a special-purpose vehicle (SPV) tentatively named Asset Co. and invest up to $9 billion to secure AI infrastructure, including graphics processing units (GPUs) and data centers. It will then provide computing power to NAVER Cloud, the operator of the AI factory.

A NAVER representative said, "Building on this infrastructure, NAVER and NAVER Cloud will lead the AI factory business by drawing on their extensive experience in building and operating large-scale GPU clusters in-house, as well as their data center operations expertise."

The company began operating 55 MW in the first half of this year and plans to expand capacity to 200 MW by 2028. It will gradually expand the business into overseas markets, with the hyperscale data center Gak Sejong serving as a key hub.

NVIDIA will provide technical collaboration focused on next-generation high-performance computing platforms, including DSX, and is expected to help strengthen the AI factory's technological competitiveness and improve infrastructure operating efficiency.

A NAVER representative said, "The agreement and equity investment are significant because they further strengthen the strategic partnership among NAVER, NVIDIA and Brookfield while establishing a long-term cooperative relationship through which the three companies will work to lead the global AI infrastructure market."

In particular, NAVER expects its partnership with Brookfield to ease the initial investment burden involved in building large-scale AI infrastructure. By establishing a structure in which usage fees are paid in connection with business revenue, the company also expects to manage the financial burden in the early stages of the business and improve operational stability.

NAVER said it would provide a payment guarantee for up to eight years covering the usage-fee payment obligations of its subsidiary NAVER Cloud. It added that the guarantee is intended to build trust and ensure smooth contract performance, and will not result in actual cash outflows or costs for NAVER.

A NAVER representative said, "Through this business structure, we will secure both financial stability and the ability to expand the business, actively respond to the rapidly growing demand for AI computing in domestic and international markets, and grow into a leading global AI infrastructure company."

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