Naver Sets Up Silicon Valley Investment Hub to Boost AI Ambitions
South Korea's largest internet company Naver is establishing a new investment subsidiary in Silicon Valley as it seeks to catch up in the global AI race.
Naver Ventures, expected to complete its establishment process later this month, will be headed by Yong-Jung Park as general partner, though Kim Nam-sun oversees the broader strategic investment division. The new venture has already confirmed TwelveLabs, a video AI startup, as its first investment.
Naver executives including founder Lee Hae-jin and CEO Choi Soo-yeon hosted a networking event on June 5 at the Four Seasons Hotel, drawing about 200 Silicon Valley entrepreneurs and investors. The gathering included prominent Korean tech leaders from companies like Sendbird, Moloco, and Datalyze.
"Silicon Valley is a cradle of innovation where skilled professionals and cutting-edge technologies converge," said CEO Choi Soo-yeon. She emphasized Naver's role in helping startups secure stable funding amid global economic uncertainty.
The move comes as industry watchers note Naver's large language model has lagged behind peers in performance and cost-efficiency. While Naver's HyperCLOVA X claims superior Korean language capabilities compared to ChatGPT, the company has struggled to match global AI leaders like OpenAI and China's DeepSeek.
The unit will focus on sourcing AI talent and investing in cutting-edge technologies with the goal of integrating them into Naver's broader AI strategy.
Naver's existing venture arm D2SF has already expanded to North America, backing startups like Claythis and YesPlz AI. However, Naver Ventures will operate as a more autonomous entity focused exclusively on the competitive U.S. market.
In 2024, Naver reported sales of KRW 10.74 trillion (approximately $7.5 billion) and ranks as Korea's 12th largest company by market capitalization, providing substantial resources for its Silicon Valley expansion.
TwelveLabs, which recently raised $30 million bringing total funding to $107.1 million, develops AI that can analyze and search video content. The startup has attracted investors including Nvidia, Samsung, and Intel.
The establishment of Naver Ventures represents the Korean company's most aggressive overseas AI investment strategy as competition intensifies in the sector.