The collaboration aims to expand AI infrastructure and boost market confidence in South Korea
Category: Business
In a strategic move that has sent ripples through the South Korean stock market, Naver Corporation has announced a partnership with NVIDIA to establish a massive global AI factory. The announcement comes during NVIDIA CEO Jensen Huang's visit to South Korea, where he met with key figures from the technology sector, including Naver's Executive Chairman, Lee Hae-jin. This collaboration is expected to bolster Naver's standing in the competitive AI ecosystem and significantly impact stock prices, with Naver shares rising sharply in response.
On June 8, 2026, as Huang met with Lee at Naver's headquarters, the company revealed its ambitious plan to launch a 55 megawatt (MW) AI factory by the first half of 2027, with subsequent expansions to 100 MW later that same year, and an eventual goal of reaching 200 MW by 2028. This infrastructure will be capable of supporting hundreds of thousands of NVIDIA's latest graphics processing units (GPUs), marking a substantial leap in Naver's capabilities in AI.
As of 11:27 AM on the same day, Naver's stock had surged by 12.13%, trading at 286,500 KRW, following the announcement of this partnership. This uptick is particularly notable against a backdrop of general market declines, demonstrating the positive sentiment surrounding the collaboration with NVIDIA.
The AI factory aims to serve as a next-generation infrastructure for training and deploying large-scale AI models, which are increasingly becoming integral to various industries. Naver plans to integrate its existing data centers and cloud capabilities with NVIDIA's advanced technologies to optimize operational efficiency and business viability. The collaboration extends beyond mere GPU supply, encompassing a comprehensive partnership that includes global demand discovery and capital cooperation.
Notably, the planned 1 gigawatt (GW) capacity of the AI factory is approximately four times the maximum capacity of Naver's current hyper-scale data center, "Gak Sejong." This ambitious project positions Naver as a key player in the AI infrastructure space, not just within South Korea, but also in the broader Asia-Pacific region and beyond.
The implications of this partnership are far-reaching. With the global demand for AI solutions on the rise, establishing a solid infrastructure is imperative for companies looking to maintain a competitive edge. Naver's collaboration with NVIDIA is expected to facilitate the development of sovereign AI capabilities across different regions, offering a concrete alternative for countries aiming to build independent AI ecosystems.
During their meeting, Lee expressed optimism about the partnership, stating, "This alliance will provide concrete alternatives for regions and countries to build their own sovereign AI capabilities. It is a promising step that could propel Naver's technological infrastructure into the global arena." This sentiment is echoed in the market's reaction, as investors are increasingly bullish on the potential for Naver to expand its influence in the AI sector.
As the partnership progresses, several key milestones will be closely monitored. The establishment of the AI factory's initial phase in 2027 marks a turning point for Naver, and the subsequent expansions will be indicative of the company's ability to scale operations effectively. The market will also be watching for developments in policy, particularly with the recent appointment of Han Seong-sook, a former Naver CEO, as the Minister of Small and Medium Enterprises and Startups. Her position may influence favorable policies for tech companies and AI development in South Korea.
In addition, the collaboration's success will depend on how well Naver integrates NVIDIA's technologies into its operations. The potential for joint ventures in Europe and the Middle East also presents exciting opportunities for growth.
| Aspect | Naver's Plan | Market Reaction |
|---|---|---|
| Initial Capacity | 55 MW in 2027 | Stock increased by 12.13% |
| Future Expansion | 100 MW in 2027, 200 MW in 2028 | Positive sentiment among investors |
| Global Reach | Focus on Asia-Pacific, Europe, Middle East | Increased interest in AI infrastructure |
| Strategic Partnerships | Collaboration with NVIDIA | Market confidence in tech sector |
In a time when the global AI race is intensifying, Naver's partnership with NVIDIA could potentially redefine the competitive dynamics within the industry. As both companies move forward with their plans, the tech community and investors alike will be keeping a close eye on developments, eager to see how this collaboration shapes the future of AI in South Korea and beyond.