[Edaily Reporter Lee So-Hyun ] Naver has unveiled the specific operational structure of its global artificial intelligence (AI) factory project, which it is pursuing in partnership with NVIDIA and Brookfield. It is a three-way partnership in which Naver (NAVER(035420)) will lead the AI computing business through a separate operating entity, NVIDIA will handle GPU supply and the technology ecosystem, and Brookfield will be responsible for large-scale infrastructure investment.
This initiative is significant as it represents a strategic move by Naver to expand its scope beyond simply securing high-performance GPUs and into becoming an AI computing infrastructure provider.
According to the “Naver AI Factory Phase 1” business structure plan disclosed by Naver on the 3rd, Naver will hold a 100% stake in the newly established operating entity and oversee the AI computing services business.
The operating entity will be responsible for procuring GPU-based computing resources from a special purpose vehicle (SPV) established by Brookfield and selling them to companies and institutions. Naver Cloud will participate in customer acquisition and business execution through NVIDIA’s AI Compute Partnership (AI CP). A Naver official explained, “Legally, the operating entity is a separate, newly established corporation, and Naver Cloud is involved in the business execution process with NVIDIA.”
This first-phase project, with a capacity of 200 MW, is part of Naver’s plan to build a gigawatt (GW)-class AI factory, which was announced last June.
NVIDIA is pursuing a $1 billion equity investment in Naver, while Brookfield will invest up to $9 billion to establish a special purpose vehicle (SPV) for building AI data centers. The SPV will be responsible for securing GPUs and data center facilities, and Naver’s operating entity will utilize these resources to provide AI computing services. Naver is also considering acquiring a minority stake in the SPV to ensure a stable supply of computing resources.
This arrangement is considered significant because it demonstrates that Naver is not simply relying on NVIDIA. Even though NVIDIA will provide GPUs and the technology ecosystem and Brookfield will provide funding, Naver will take the lead in operating the AI computing business.
In particular, Naver explains that NVIDIA’s equity investment holds strategic significance in securing a stable GPU supply chain, rather than merely serving as a source of funding. Amid growing competition for AI data center investments, which is making it difficult to secure cutting-edge GPUs, Naver has established a cooperative foundation with NVIDIA through this equity partnership to ensure the timely supply of necessary computing infrastructure.
It is also interpreted that this move is based on the assessment that having NVIDIA as a Naver shareholder could serve as a safeguard to stabilize GPU prices and supply conditions. For NVIDIA as well, expanding its GPU ecosystem through the growth of Naver’s AI computing business aligns with its interests, creating a mutual benefit for both companies.
Brookfield’s participation helps reduce the initial investment burden. Rather than Naver securing all GPUs and data center facilities directly, an SPV will handle asset investment and financing, while Naver’s operating entity will utilize the computing resources.
However, the accounting treatment may vary depending on the final contract terms, control over the assets, and usage obligations.
Brookfield has been granted a 12-week exclusive negotiation period by Naver. If negotiations are successful, Brookfield will be selected as the final financing partner; if negotiations break down, Naver may resume discussions with other investors.
The remaining challenge is securing client companies. Naver plans to quickly finalize computing supply contracts with the companies currently under discussion to demonstrate the AI Factory’s profitability and growth potential to the capital markets and potential clients.
