Seoul: Naver Corp. announced in a regulatory filing that it has entered into a strategic partnership with U.S. chip giant Nvidia Corp. to establish a large-scale, global artificial intelligence (AI) factory. The initiative marks a significant collaboration aimed at expanding the AI computing market.

According to Yonhap News Agency, the South Korean portal operator will lead the acquisition, construction, and operations of the data center site. Nvidia will contribute as the graphics processing unit supplier. The partnership aims to capitalize on business opportunities in the global AI computing market, creating new revenue streams for both companies.

The agreement outlines that Naver will expand the initial NVIDIA DSX AI factory build-out at the GAK Sejong data center from 55 megawatts to 200 megawatts by 2028. The ultimate goal is to extend infrastructure beyond the Asia-Pacific region. Nvidia will make an equity investment of approximately US$1 billion by acquiring common shares of Naver through a third-party private placement.

Brookfield is anticipated to provide $9 billion worth of computing infrastructure through project financing. Naver has designated the Toronto-based asset manager as the preferred bidder for the next 12 weeks as discussions continue to finalize the agreement. The investments are projected through 2028, though the exact amount from Naver remains undecided.

This announcement follows a high-level meeting involving South Korean conglomerate leaders and U.S. tech giants, coinciding with President Lee Jae Myung's visit to San Francisco.