Nvidia is investing $1 billion in Naver, which is referred to as South Korea’s Google.
- Separately, a Wall Street Journal report said that Nvidia was in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project.
- The series of partnership news builds on Nvidia investments across the AI and cloud supply chain.
- The retail sentiment for NVDA dipped in the past week and was ‘bearish’ as of late on Sunday.
Nvidia Corp. shares rose 1% in overnight trading late Sunday amid a slew of partnership news, which appears to be injecting fresh optimism in the key AI stock that has curiously lagged chip peers this year.
Nvidia is investing $1 billion in Naver, known as South Korea’s Google, to help finance a new data center in the country that is sponsored by U.S. private equity firm Brookfield, according to an announcement late Friday. The data center will use Nvidia’s AI accelerators.
Nvidia is also teaming up with SK Group to build more than 2 gigawatts of AI data centers on the Korean Peninsula. The first of those is being built by SK Telecom and will open next year.
The development signals Nvidia’s expanding presence in the Asian country, home to two of the world’s largest chipmakers, SK Hynix and Samsung Electronics. For Nvidia, closer ties with SK Group will help improve its access to computer memory chips.
NVDA Eyes OpenAI Financing
Separately, back home, Nvidia is in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project. The guarantees from Nvidia would help the ChatGPT maker lease a 10-gigawatt project being developed by a unit of SoftBank in southern Ohio, The Wall Street Journal reported late Sunday, citing people familiar with the matter.
The developments are the latest in a series of investments by Nvidia across the AI and cloud supply chain. Essentially, Nvidia is aiming to accelerate the uptake of its products and eliminate roadblocks that threaten to slow the adoption of AI.
Retail View On NVDA
On Stocktwits, retail sentiment for NVDA dipped in the past week and was ‘bearish’ as of late on Sunday. NVDA stock gained 2% in the past week, but remains 12% below its peak from May.
“$NVDA Nvidia is going to it’s all time highs the SK group partnership is worth billions of dollars of revenues & profits for Nvidia,” a trader said.
Another wrote: “$NVDA the recent news is actually registering with me that $NVDA is on the cusp of being an actual giant that has its hands on everything in this market.” Stocktwits sentiment was ‘bearish’ for SKHY and OPENAI.
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