Nvidia Invests $1 Billion in Naver, Expands Accord with SK Group

Nvidia Corp. (NVDA), the market leader in artificial intelligence (AI) chips, has announced a significant $1 billion investment in South Korean internet and cloud service provider Naver Corp. This strategic move aims to support the financing of an AI data center under construction in South Korea, bolstering Nvidia's presence in the country's rapidly growing AI and semiconductor sectors.

The investment, announced on July 24, 2026, will enable Naver to more than double the size of its data center, which is being developed in collaboration with Brookfield Asset Management, and will feature Nvidia's cutting-edge AI computing hardware. Naver's GAK Sejong facility is the focus of this “AI factory” project, with plans to reach gigawatt-scale capacity by 2029. Brookfield is also expected to provide up to $9 billion in additional funding for the data center buildout and power infrastructure. Nvidia CEO Jensen Huang stated that South Korea is entering a “golden age,” with its semiconductor and industrial businesses booming and its capability to help build global AI infrastructure.

This investment is just one facet of Nvidia's expanding AI vision in South Korea. The company has also unveiled a massive AI initiative with South Korea's SK Group, valued at over $500 billion. This comprehensive collaboration encompasses the construction of large-scale AI data centers and the development of next-generation memory technologies. SK Group is building an “AI factory” featuring over 50,000 Nvidia GPUs, while SK Telecom plans to construct a 2-gigawatt AI data center, expected to come online in 2027, powered by Nvidia's Vera Rubin chips and SK Hynix's HBM4 high-bandwidth memory.

These strategic partnerships are crucial for Nvidia to solidify its leading position in AI infrastructure and to establish South Korea as a central player in the global AI ecosystem. The long-term agreement with SK Hynix secures next-generation memory supply for Nvidia and involves joint development of high-bandwidth memory (HBM) for AI training, AI agents, and physical AI applications. Analysts indicate that such large-scale infrastructure investments are vital for Nvidia's long-term growth strategy.

Market expectations suggest that demand for AI infrastructure is surging worldwide, with this expansion phase anticipated to continue for over a decade. Nvidia's investments demonstrate the company's efforts to capitalize on the increasing global demand for its AI chips and platforms. According to GuruFocus, Nvidia's stock (NVDA) is currently undervalued by approximately 43.6% relative to its intrinsic value, boasting strong profitability and growth rankings, which presents an attractive opportunity for long-term investors.

Looking ahead, South Korea is expected to develop regional AI models and advanced models like HyperCLOVA X through these AI hubs. This large-scale AI infrastructure is projected to provide AI access to a broad industrial base, from universities to startups, and transform the country into an AI-powered nation. The collaboration between Nvidia and SK Group will also include joint research on next-generation AI factory architecture across accelerated computing, memory technologies, and data center operations.