Key Takeaways
- Shares of Naver climbed nearly 14% to 290,500 won following the announcement of a strategic AI partnership with Nvidia
- Both companies will collaborate to construct “AI factories” — comprehensive data center facilities and supporting infrastructure — throughout South Korea
- Initial capacity targets 55 megawatts with plans to expand to gigawatt scale utilizing Nvidia’s DSX platform technology
- The initiative launches at Naver’s Gak Sejong facility in Sejong City
- During his South Korea visit, Nvidia CEO Jensen Huang also revealed additional partnerships with SK Hynix and Doosan
Shares of Naver experienced a dramatic rally on Monday, surging nearly 14% to reach 290,500 won, significantly outpacing the KOSPI index which tumbled approximately 9%.
The impressive stock performance followed the announcement of a strategic collaboration between Naver and Nvidia focused on developing sovereign artificial intelligence infrastructure within South Korea.
The partnership centers on constructing what both companies describe as “AI factories” — comprehensive, full-stack data center operations and infrastructure specifically engineered for the emerging agentic AI landscape.
The inaugural phase of the project is designed to deliver 55 megawatts of processing capacity, with long-term goals to expand operations to gigawatt-level scale.
This massive expansion will leverage Nvidia’s DSX platform, a comprehensive solution engineered to deploy complete AI ecosystems from end to end.
“We’ve entered the era of practical AI, and the demand for AI factory infrastructure is unprecedented,” stated Nvidia CEO Jensen Huang in an official release.
“Through NVIDIA DSX, we’re positioned to support Korea in scaling sovereign intelligence infrastructure for the agentic era — encompassing AI agents, AI factories, and physical AI applications,” Huang explained.
The collaborative effort will begin operations at Naver’s Gak Sejong data center facility, situated in Sejong City, South Korea.
Partnership Reaches Beyond Computing Infrastructure
The agreement encompasses more than just traditional computing infrastructure. Both organizations intend to work together on physical AI development, targeting enterprise solutions and surveillance technology applications.
Naver has invested heavily in developing its artificial intelligence capabilities over recent years, notably creating its proprietary large language model called HyperCLOVA X.
This new partnership provides that ongoing initiative with a powerful hardware and infrastructure ally in Nvidia.
Component of Broader Korean Market Strategy
The Naver announcement represented just one of multiple partnerships unveiled during Huang’s South Korean business trip.
Nvidia simultaneously announced separate strategic agreements with semiconductor memory manufacturer SK Hynix and diversified industrial group Doosan during the same visit.
These announcements highlight Nvidia’s strategic initiative to strengthen its foothold within South Korea’s technology industry.
Naver, which holds a co-ownership stake in the LINE messaging application, operates as South Korea’s dominant internet search provider.
The initial 55-megawatt development at Gak Sejong represents the foundation for what both partners characterize as an extended, multi-phase infrastructure expansion program.
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