Nvidia's $1 billion investment in Naver sent the internet giant’s stock soaring over 10% on July 27, 2026. The deal involves Nvidia purchasing newly issued Naver shares at 204,500 won each, just slightly below the previous closing price.

Expanding AI Infrastructure at an Accelerated Pace

At the heart of this move is the massive expansion of Naver’s GAK Sejong AI data center. The facility currently operates at 55 MW but is set to nearly quadruple its capacity to 200 MW by 2028. Nvidia’s DSX platform and cutting-edge GPUs will power this growth, marking a substantial ramp-up of South Korea’s sovereign AI infrastructure. Alongside Nvidia’s equity buy-in, Brookfield Asset Management is backing the project with up to $9 billion in financing. Meanwhile, Nvidia is also teaming up with SK Group to develop over 2 GW of AI data center capacity across the country, signaling a broad commitment to the region’s AI ambitions.

Why Naver Is Central to South Korea’s AI and Digital Economy

Naver dominates as South Korea’s top search engine and a major cloud services provider. Its expanding financial services division recently announced a $10.3 billion stock-swap deal to acquire Dunamu, which owns Upbit, the country’s largest crypto exchange. This pending acquisition would make Naver a unique player: a hyperscale AI infrastructure operator with direct ties to South Korea’s bustling digital asset market.

Investor Implications and Market Context

The Nvidia deal not only endorses Naver’s AI infrastructure strategy but also strengthens its capital base through a share issuance priced near market value. This strategic backing sparked the 10% jump in Naver’s share price in a single session. Should the Dunamu acquisition close, investors will gain indirect exposure to the South Korean crypto market through Upbit’s extensive trading volume. Brookfield’s massive $9 billion funding commitment suggests strong confidence in sustained AI compute demand, matching the scale of investments made by industry giants like Microsoft and Google. This aligns with wider trends in AI-related capital expenditure, highlighting the accelerating race to build next-generation infrastructure.

This material is for informational purposes only, not investment advice.