Naver Signs $9 Billion AI Infrastructure Deal, Clearing Nvidia's $1 Billion Investment Condition

What happened

Under the contract, Brookfield will set up a special purpose vehicle called Asset Co., fully funded by Brookfield, to build AI infrastructure such as GPUs and data centers, with the goal of developing up to $9 billion in computing assets by 2028; Naver Cloud will receive computing resources from the vehicle and offer AI computing services to outside customers.

The contract follows Naver's global AI factory plan announced on June 8, when Brookfield was picked as the exclusive negotiating partner for 12 weeks; in late July, the three parties agreed on a gigawatt-scale AI factory project, under which Nvidia planned to invest about $1 billion in Naver, conditional on at least $9 billion of computing infrastructure being secured.

Naver said on October 27 that, with the contract signed, it will swiftly complete the third-party share allotment procedures for Nvidia, with specific details to be disclosed later; Naver and Naver Cloud will lead the AI factory business, while Nvidia supplies GPUs and cooperates on its next-generation high-performance computing platform, DSX.

Key facts

1. Parties: South Korean internet company Naver and global alternative asset manager Brookfield.
2. Deal size: Up to $9 billion in AI computing infrastructure, to be developed by 2028.
3. Funding structure: Brookfield fully funds the special purpose vehicle Asset Co., which will be consolidated into Naver's accounts because Naver's control is recognized under Korean International Financial Reporting Standards.
4. Investment precondition: The contract meets the precondition for Nvidia's roughly $1 billion (about 1.5 trillion won) strategic investment: securing at least $9 billion in computing infrastructure, excluding the investment itself.
5. Usage-fee arrangement: Instead of buying the infrastructure directly, Naver Cloud will pay usage fees linked to business revenue; Naver guarantees those payments for up to eight years, and the company said the guarantee itself will not lead to an actual cash outflow.
6. Build-out schedule: Centered on the Gak Sejong hyperscale data center, 55 megawatts start operating in the first half of 2027, expanding to 100 megawatts by the end of 2027 and 200 megawatts by 2028, with a long-term goal of 1 gigawatt.
7. Market direction: Naver plans to expand the AI factory business from South Korea into Asia-Pacific, European and Middle Eastern markets.
8. Nvidia's role: Supplying GPUs and providing technical cooperation centered on its next-generation high-performance computing platform, DSX, to improve infrastructure operating efficiency.