TL;DRNvidia is investing $1 billion in Naver and building a $500 billion commercial partnership with SK Group spanning data centers and memory chips
Nvidia will invest $1 billion in South Korean internet company Naver to help finance an AI data center under construction in South Korea, the chipmaker announced late Friday. The funding will allow Naver to more than triple the size of the facility from 55 megawatts to 200 megawatts, with US private equity firm Brookfield agreeing to a nonbinding term sheet to fund up to $9 billion for the project. The site will run on Nvidia’s AI computing hardware.
Separately, Nvidia announced a long-term commercial partnership with SK Group that it described as worth more than $500 billion. The figure includes money Nvidia will spend buying memory chips from SK Hynix, the world’s largest supplier of high-bandwidth memory, as well as purchases by SK Group of Nvidia’s supercomputers. SK Telecom will build more than 2 gigawatts of AI data centers on the Korean Peninsula, with the first facility due to open next year.
The announcements coincide with a visit to Silicon Valley by South Korean President Lee Jae Myung, and additional tech deals between Korean and American companies are reportedly in the works. Nvidia CEO Jensen Huang told Bloomberg Television that South Korea is in a “golden age,” pointing to the country’s booming semiconductor and industrial businesses as reasons to invest. Nvidia will also help SK Hynix design future high-bandwidth memory chips, an effort to guarantee access to the component that remains in short supply because of the global buildout of AI data centers.
