Key insights
- South Korea's Naver Corp. has partnered with Nvidia to build AI infrastructure, including data centers, in South Korea. This collaboration aims to develop 'AI factories' and leverage Nvidia's DSX platform. The deal highlights the growing global demand for AI infrastructure and Nvidia's dominant role in supplying the necessary technology. While primarily a South Korean development, it signals continued investment and expansion in the AI sector, which could indirectly benefit US-listed semiconductor and technology companies involved in the AI supply chain.
Investing.com-- Naver Corp (KS:035420) shares rose sharply on Monday after the South Korean internet firm announced a partnership with NVIDIA Corporation (NASDAQ:NVDA) to build artificial intelligence infrastructure in the country.
Naver surged nearly 14% to 290,500 won, largely outpacing a near 9% slide in the KOSPI index.
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The company and Nvidia said they will collaborate on building “AI factories,” specifically data centers and infrastructure in South Korea over the coming years.
The two will first target building a 55 megawatt project and aim to scale up to gigawatt levels using Nvidia’s DSX platform.
“NAVER is building AI factory infrastructure that will serve its companies, developers and industries,” Nvidia CEO Jensen Huang said in a statement.
Naver and Nvidia said they will target providing sovereign AI infrastructure, with the project kicking off with an AI expansion at Naver’s Gak Sejon data center in the city of Sejong.
Beyond data centers, Naver and Nvidia will also collaborate on physical AI in enterprise and surveillance applications, the two said in a statement.
Naver is South Korea’s largest online search engine, and also jointly owns the LINE messaging application.
The company has leaned heavily into AI in recent years with its own in-house large language models, most notably its HyperCLOVA X model.
The partnership with Nvidia came as Nvidia CEO Jensen Huang visited South Korea and met with several of the country’s biggest tech leaders. Beyond Naver, Nvidia also announced deals with SK Hynix Inc (KS:000660) and Doosan (KS:000150).
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