Nvidia to Invest $1 Billion in Naver for 4.5% Stake, Deepening AI Factory Alliance

Nvidia has announced a $1 billion investment in Naver Corp., South Korea's largest online platform operator, through a third-party allotment of new shares representing approximately 4.5% of the company. The strategic investment agreement was signed in San Francisco on July 24, with South Korean President Lee Jae-myung in attendance, marking a significant deepening of the companies' AI infrastructure alliance.

The investment follows Naver's preliminary $9 billion GPU infrastructure deal with Brookfield Asset Management, bringing the South Korean company's combined AI buildout financing to roughly $10 billion. This signals a major escalation in Naver's ambitions for AI infrastructure, far beyond the scale previously associated with the search and e-commerce giant.

Naver has long operated large-scale data centers in South Korea and deployed Nvidia GPUs for its AI services. The equity investment elevates the relationship from a technology partnership to a capital-level strategic alignment, potentially giving Naver preferential access to Nvidia's GPU supply chain as both companies expand their AI footprint.

For Nvidia, the Naver investment serves dual purposes: a financial return on a strategic stake, and a deeper anchor in South Korea's AI ecosystem. South Korea is home to semiconductor powerhouses Samsung and SK Hynix, and Nvidia has previously signaled interest in investing in the country's robotics and physical AI sectors. A stake in Naver gives the chipmaker a stronger operational presence in the Korean AI landscape.

For Naver, Nvidia's strategic backing provides both capital and credibility for its AI infrastructure ambitions. Naver has been actively expanding its Naver Cloud AI business and was recently selected as one of five lead firms for South Korea's sovereign AI model initiative, which aims to build large-scale AI models independent of US technology companies.

The deal reflects a broader trend in the AI industry: leading chip companies and major internet platforms are forming deeper capital ties to lock in long-term demand and infrastructure commitments. This chip-plus-platform vertical integration is reshaping the competitive dynamics of the global AI race.