Business · Companies · 2 hrs ago
Naver shares rise after $9 billion AI infrastructure deal
Naver agreed with Brookfield on a roughly $9 billion computing infrastructure deal announced the day before the shares rose.
A separate company funded by a Brookfield investment vehicle will secure graphics processing units, or GPUs, which are used for computing tasks such as AI.
Naver Cloud will receive the equipment and provide services to its customers.
On October 28, Naver shares were up 6.66% in early trading in South Korea, after rising as much as 7.23%.
Analysts said the arrangement could reduce uncertainty about funding and costs for AI computing infrastructure.
They also said the deal’s value to Naver depends on future customer contracts and how much profit the company ultimately receives.
AI factory revenue is expected to begin appearing gradually from the first quarter of next year, while further contract announcements may come by the end of this year.
Naver shares rose after the company disclosed a $9 billion computing infrastructure deal with global asset manager Brookfield.
The deal was announced the previous day and involves a separate company funded by a Brookfield investment vehicle securing GPUs.
Naver Cloud will receive the GPUs and provide services to customers.
At 9:31 a.m. on October 28, Naver shares were up 6.66% at 185,900 won.
Analysts said the deal clarified the business structure, while noting that customer contracts and Naver’s share of profits remain important.
- Who
- Naver and global asset manager Brookfield.
- What
- They signed a deal worth $9 billion to secure computing infrastructure, including GPUs.
- When
- Naver disclosed the deal the day before October 28. Its shares rose early on October 28.
- Where
- The shares traded on South Korea’s KOSPI market.
- Why
- Investors reacted to the deal, which analysts said clarified the funding and business structure for AI infrastructure.
This story does not have two clearly opposing sides.
Naver disclosed that it had signed a $9 billion computing infrastructure deal with Brookfield.
Naver shares began the session up 3.90%.
Naver shares were up 6.66% at 185,900 won, after reaching a session gain of 7.23%.
- Deal value
- $9 billion, or about 12 trillion won
- Share price at 9:31 a.m.
- 185,900 won, up 6.66%
- Session high gain
- 7.23%
- GPU supplier structure
- A separate company funded by a Brookfield investment vehicle will secure GPUs
- Service provider
- Naver Cloud will receive the GPUs and provide services to customers
- Expected AI Factory revenue
- Gradual contribution from the first quarter of the following year, according to a Daol Investment & Securities researcher
What people are saying
It is positive that the company has made concrete through a contract a structure involving large-scale external capital amid global AI financial volatility
The visibility of follow-on customer contracts and the profits attributable to Naver after investor allocations is important
The establishment of the business structure has laid the foundation for a rise in the share price
If orders are disclosed and revenue becomes visible, the company’s share price could rise in earnest