Nvidia to acquire 4.5% stake in Naver with $1 billion investment

Nvidia will invest $1 billion in Naver and acquire a 4.5 percent stake in the Korean internet giant, the companies announced on Monday. 

The two reportedly signed an investment agreement through a third-party allotment of new shares.

A third-party share allotment is typically used to establish strategic partnerships or raise capital quickly.

Under the agreement, Nvidia will acquire 7,241,564 common shares in Naver, which represents a 4.5 percent stake.

Separately, Naver will retire about 4.9 million treasury shares, worth roughly 1 trillion won ($682 million), on Aug. 3 as part of efforts to enhance its shareholder value.

Naver also announced that it signed a preliminary agreement with global investment firm Brookfield to secure up to $9 billion to finance the construction of AI factories.

Under the arrangement, Brookfield will provide up to $9 billion for the project, and Naver will finance the remainder. The latter’s direct investment amount has not yet been determined.

Brookfield operates the global AI infrastructure program for which Nvidia is a founding partner.

Naver will use the secured funds to expand the AI factory at its Gak Sejong data center in Sejong, about 120 kilometers (74.6 miles) south of Seoul. 

BY SHIN HYE-YEON [[email protected]]