Naver has signed a $9 billion artificial intelligence (AI) infrastructure agreement with Brookfield. Having met the final condition for Nvidia's $1 billion equity investment, it is beginning its 1 GW-scale AI factory project in earnest. Naver announced the completion of the computing infrastructure agreement on October 27 in an amended disclosure concerning future business and management plans. Under the agreement, Brookfield will establish a special purpose vehicle (SPV) and invest up to $9 billion to secure AI infrastructure, including graphics processing units (GPUs) and data centers. Computing resources from this infrastructure will be provided to Naver Cloud, which will operate the AI factory. Naver and Naver Cloud will run the AI factory business using their experience in building and operating large GPU clusters and their data center operating capabilities. Naver plans to expand the AI factory from an initial 55 MW in the first half of 2027 to 200 MW by 2028. It will use the hyperscale data center Gak Sejong as its first base and gradually expand the business into overseas markets. Its long-term goal is to build 1 GW-scale AI infrastructure. Nvidia will provide high-performance computing platforms, including DSX, and handle technical cooperation for the AI factory. Nvidia previously agreed to participate in a third-party allotment of new shares, investing $1 billion in Naver. Having met the prerequisite for Nvidia's equity investment by signing the Brookfield agreement, Naver plans to complete the third-party share issuance process. Under the business structure, Brookfield will provide the substantial funding needed to build AI infrastructure, while Naver Cloud will use that infrastructure and pay usage fees. Rather than directly owning all the GPUs and data center equipment, Naver will use external capital to distribute the initial investment burden. Naver has agreed to guarantee its subsidiary Naver Cloud's usage-fee payment obligations for up to 8 years. Naver explained that the payment guarantee is a credit enhancement measure to support contract performance and does not itself immediately result in a cash outflow. Naver plans to develop the AI factory into a new business-to-business (B2B) operation providing computing resources to domestic and overseas companies and public institutions. It intends to meet growing AI computing demand by expanding infrastructure from Gak Sejong into overseas markets. “Based on this business structure, we will secure both financial stability and business scalability, actively respond to rapidly increasing AI computing demand in domestic and overseas markets, and develop into a leading global AI infrastructure company,” Naver said.
Original Korean article: ETNews
English brief by Korea Wind Intelligence, koreawindintel.com
