Nvidia's $1 Billion Investment in Naver Moves Closer to Completion as AI Factory Financing Takes Shape

The planned investment will make Nvidia Naver's third-largest shareholder, bringing the chipmaker closer to a major AI infrastructure project backed by Brookfield and South Korean financial institutions.

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Nvidia is scheduled to invest $1 billion in South Korean technology company Naver on November 6, giving the US chipmaker an expected 4.54% stake and making it the company's third-largest shareholder. The investment comes as Naver moves ahead with plans to develop a large-scale AI computing facility in partnership with Canadian investment manager Brookfield, with substantial financing now being arranged by South Korean banks.

In a regulatory filing on October 30, Naver confirmed the payment date for the investment, which will be made through a third-party share allotment involving approximately 7.24 million new shares at 204,500 won each. The final allocation will be calculated using the exchange rate on November 3, and the new shares are scheduled to be listed on November 27. Following the transaction, Nvidia is expected to rank behind the National Pension Service and BlackRock among Naver's shareholders. Founder Lee Hae-jin's stake is expected to fall from 4.03% to approximately 3.84%.

First announced in July, the partnership between Nvidia, Naver and Brookfield was tied to Naver securing at least $9 billion in infrastructure financing. That condition was addressed on October 27, when Naver signed an agreement with Brookfield covering the development of its proposed AI factory.

Brookfield Agreement Draws Major Financing Interest

Under the agreement, Brookfield will establish a special-purpose company to acquire GPUs, data centers and related computing infrastructure, with an investment of up to $9 billion. Naver Cloud will use the computing capacity under a long-term agreement, while Naver will oversee the operation of the AI factory and develop services for customers. Nvidia will contribute its computing platforms and technical expertise to the project.

Located around Naver's GAK Sejong hyperscale data center, the facility is expected to begin operations at 55 megawatts in the first half of 2027. Capacity is planned to reach 200 megawatts in 2028, with Naver outlining a longer-term ambition to expand toward one gigawatt as demand for AI computing grows.

South Korea's banking sector is also becoming involved in the project. On November 1, KB Kookmin Bankannounced that it had secured the lead arranger role for a 10.7 trillion won syndicated loan, worth approximately $8 billion, to finance the acquisition of AI computing infrastructure. The bank described the arrangement as South Korea's first GPU financing deal and the largest syndicated loan in the country's history. Other financial institutions are expected to participate, although the final lending structure has not been fully disclosed.

Nvidia's planned shareholding gives it a closer relationship with a major Asian cloud operator that will deploy and commercialize its computing technology. Naver gains a strategic connection to the chipmaker as it expands its AI and cloud operations, while Brookfield provides the capital needed to acquire the infrastructure. The arrangement also brings financial institutions into a segment where the cost of GPUs and data center capacity is becoming a significant consideration for companies planning large-scale AI deployments.

Commercial demand will be important as the facility moves toward operation. Naver has agreed to guarantee certain payment obligations of Naver Cloud for up to eight years, making the subsidiary's ability to generate business from the computing capacity an important part of the project's longer-term economics.

Nvidia's investment is scheduled for November 6, marking the next step in a partnership that brings together the chipmaker's technology, Brookfield's infrastructure financing and Naver's cloud operations. Its significance extends beyond the change in Naver's shareholder structure, giving Nvidia a direct interest in a major AI infrastructure project in South Korea.

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