Naver, Brookfield Sign USD 9 Billion AI Infrastructure Deal, Clearing Nvidia Investment Condition
TECHWORLD ·
✦ AI Summary
Naver and Brookfield have signed a USD 9 billion deal to secure computing infrastructure.
The agreement satisfies a prerequisite for Nvidia's strategic equity investment.
Based on this deal, Naver plans to complete the third-party allotment capital increase targeting Nvidia.
Naver and Brookfield have signed a USD 9 billion deal to secure computing infrastructure. The agreement satisfies a prerequisite for Nvidia's strategic equity investment. Based on this deal, Naver plans to complete the third-party allotment capital increase targeting Nvidia.
With this, the 1GW global AI factory project jointly pursued by Naver, Nvidia and Brookfield has entered the execution stage. The project is centered on Brookfield's investment in AI infrastructure and Naver Cloud's operation of the AI factory.
Brookfield has established Asset Co., a special purpose vehicle (SPV) that is 100% funded by Brookfield. Brookfield will invest up to USD 9 billion to secure infrastructure such as GPUs and data centers.
Naver and Naver Cloud have experience building and operating their own GPU clusters. Naver and Naver Cloud will take charge of the AI factory business based on their data center operating capabilities. Nvidia plans to carry out technological cooperation centered on next-generation high-performance computing platforms such as DSX.
Naver plans to gradually expand the scale of operations. Naver has set a plan to begin with 55 MW in the first half of 2027, and it has also prepared a plan to expand to 200 MW by 2028. Naver plans to use the hyperscale data center 'Gak Sejong' as a key hub and has also set a plan to expand the business into overseas markets.
The financial structure was designed to ease the burden of initial investment. Brookfield will provide the funds needed to secure the infrastructure, while Naver Cloud will pay fees linked to business revenue. This is intended to lower the initial investment burden.
In the process, Naver will provide a payment guarantee of up to 8 years for Naver Cloud's fee payment obligations. According to the company, the payment guarantee is a credit enhancement measure to ensure contract performance. The company said the guarantee itself does not mean an immediate cash outlay or cost burden.
Asset Co., established by Brookfield, is structured as a company in which Brookfield holds a 100% stake. However, the company said that because Naver's control is recognized under K-IFRS accounting standards, Asset Co. is expected to be included as a subsidiary of Naver.
The project was presented as a way to respond to rising domestic and overseas demand for AI computing while expanding Naver's AI infrastructure business. Naver said it will pursue a third-party allotment capital increase targeting Nvidia, and that the specific terms and schedule of the capital increase will be disclosed later.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=408841
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Source: TECHWORLD
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