Nvidia will invest 1.34 trillion won in Naver, securing a 4.13% stake in the company. This investment aims to strengthen their partnership beyond simple graphics processing unit (GPU) supply and to collaborate on building global artificial intelligence (AI) infrastructure.
On November 3, Naver confirmed that the amount in Korean won for Nvidia's $1 billion investment is set at 1.34 trillion won.
The investment will occur through a paid-in capital increase, where Nvidia will acquire newly issued shares from Naver. Nvidia will purchase 6,558,435 new shares at a price of 204,500 won per share. Once the payment is completed on November 6, Nvidia will hold approximately 4.13% of Naver's shares. Unlike previous investments where existing shareholders sold their shares, this structure allows the investment funds to flow directly into Naver.
Compared to the initial announcement, the investment amount in won has decreased by about 139.7 billion won, and the number of new shares issued has dropped by approximately 680,000. This adjustment reflects changes in exchange rates, while the dollar amount of the investment remains at $1 billion.
This investment is linked to a joint initiative by both companies to establish a global AI factory. Naver will lead the construction and operation of data centers, while Nvidia will supply the GPUs necessary for AI computations. This investment not only secures funding for Naver but also enhances its technological collaboration with Nvidia.
The significance of Nvidia becoming a shareholder in Naver lies in the potential for a capital relationship that goes beyond the traditional supplier-customer dynamic. This partnership could facilitate shared successes in the AI infrastructure business, laying the groundwork for long-term collaboration between the two companies.
* This article has been translated by AI.
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