Shares of South Korean internet company Naver Corp surged on Monday after Nvidia announced plans to invest $1 billion in the business.
The investment forms part of a wider partnership to develop a major artificial intelligence data center in South Korea.
Naver Stock Rallies Nearly 8%
Naver shares climbed almost 8%, reaching their highest level since June 22. The stock significantly outperformed the broader KOSPI index, which fell by around 1% during the session.
The sharp rally followed a regulatory filing confirming that Nvidia would purchase $1 billion worth of newly issued Naver shares.
Naver said the proceeds would help finance the construction and expansion of its planned AI data center.
Nvidia Expands Its South Korean AI Presence
The investment represents the latest step in Nvidia’s effort to strengthen its position in South Korea’s rapidly expanding artificial intelligence infrastructure market.
Demand for advanced AI computing capacity continues to rise as technology companies, governments and industrial groups invest heavily in data centers.
Through its partnership with Naver, Nvidia will provide the computing hardware required to operate the new facility.
AI Data Center Capacity to More Than Triple
Naver plans to use the new funding to increase the data center’s size by more than three times its original capacity.
The facility is being developed in cooperation with Brookfield and will rely on Nvidia’s AI chips and computing systems.
The project is part of a broader partnership announced by Nvidia last week. The chipmaker is seeking to expand AI infrastructure beyond its traditional relationships with large hyperscale cloud providers.
Nvidia Deepens Partnership With SK Group
Nvidia also announced an expanded partnership with SK Group, South Korea’s second-largest conglomerate.
The companies plan to develop more than two gigawatts of AI data center capacity across the country. The wider initiative could generate over $500 billion in economic activity through purchases of memory chips, AI supercomputers and related infrastructure.
South Korean semiconductor companies are expected to benefit as the rapid development of AI data centers increases demand for high-performance memory and advanced computing equipment.
South Korea Pushes Ahead With AI Investment
The announcements came during South Korean President Lee Jae Myung’s visit to Silicon Valley.
South Korea is working to strengthen its position in the global artificial intelligence industry by attracting investment from major technology companies. The country already plays an important role in the semiconductor supply chain through companies such as Samsung Electronics and SK Hynix.
Nvidia’s investment in Naver could further support South Korea’s ambition to become a leading center for AI computing and data center development.
Nvidia Builds a Wider AI Ecosystem
Nvidia has invested billions of dollars across the artificial intelligence sector in recent months.
Its investments have included AI startups, semiconductor suppliers and large data center projects. The company is aiming to secure access to critical technology and components while encouraging wider adoption of its AI computing platform.
Chief Executive Jensen Huang has also promoted the development of sovereign AI systems. These allow countries to build domestic computing infrastructure and reduce their dependence on a small number of global cloud providers.
The Naver agreement shows how Nvidia is expanding beyond chip sales and becoming more directly involved in financing the infrastructure needed to support future AI growth.
