Naver has disclosed the contract structure surrounding its artificial intelligence (AI) factory project to address concerns over the so-called 'AI circular investment.' The company clarified that the $1 billion investment from Nvidia is not being used to purchase Nvidia's graphics processing units (GPUs). Instead, Nvidia is participating as a strategic investor, while Brookfield will act as an infrastructure investor for data centers.
On August 3, Naver released reference materials for the 'Naver AI Factory Phase 1,' which outlines the contract structure for the initial 200-megawatt (MW) project of its total 1-gigawatt (GW) AI factory plan announced in June.
According to the disclosed structure, Nvidia will invest $1 billion to acquire approximately 4.5% equity in Naver as a strategic investor (SI). Meanwhile, Brookfield will become the largest shareholder of a special purpose vehicle (SPV) that will hold infrastructure assets, including GPUs and data centers, with a potential investment of up to $9 billion.
Naver will fully own the operating company, which will receive computing resources from the SPV and provide AI computing services to corporate and institutional clients.
The SPV will use Brookfield's investment to purchase Nvidia's GPUs and build and maintain data centers. The operating company will then pay for computing resources based on usage and generate revenue by selling these resources to external customers.
Naver is also considering acquiring a minority stake in the SPV if necessary.
The company emphasized that Nvidia's equity investment is significant for securing a stable supply of GPUs rather than merely serving as a funding source. In the context of increasing competition for global AI data center investments, establishing a shareholding relationship with Nvidia is expected to ensure a reliable supply chain.
Naver anticipates that having Nvidia as a major shareholder will facilitate long-term collaboration in negotiating GPU supply prices and quantities. Nvidia, in turn, stands to expand its GPU ecosystem through Naver's growth in the AI computing sector, aligning the interests of both parties.
The SPV structure, funded by Brookfield's investment, allows Naver to avoid directly purchasing all data centers and GPUs, thereby reducing initial investment burdens and borrowing needs. The specific accounting treatment will be finalized based on the final contract terms, asset control rights, and usage obligations.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.