Naver clinches $1.5 bil. AI computing deal with US firm
Naver's headquarters in Pangyo, Gyeonggi Province / Courtesy of Naver
Naver has signed a 2 trillion-won ($1.5 billion) computing services supply contract with a U.S. artificial intelligence (AI) inference company, securing an initial customer for its AI infrastructure business ahead of the commercial launch planned in the first half of next year.
“This is a meaningful contract that confirms actual market demand and the initial commercial viability of the AI factory business,” CEO Choi Soo-yeon said during the company's third-quarter earnings call Thursday. "Revenue is also expected to be generated sequentially as commercial services begin in the first half of next year." AI factory is Nvidia's term referring to next-generation data centers generating tokens.
The contract covers computing services involving next-generation graphics processing units (GPUs), with the initial supply scheduled for 2027.
Naver is developing its AI factory business in partnership with the Canadian asset manager Brookfield and U.S. chipmaker Nvidia. It plans to expand capacity from an initial 55 megawatts next year to 200 megawatts by 2028.
The company said it had secured contracted data center capacity exceeding its initial 200-megawatt target for 2028. It is also in talks with more than 10 companies over additional AI infrastructure supply contracts, following its first 20-megawatt deal worth 2 trillion won.
Choi said Naver was pursuing long-term contracts with major customers while expanding its customer base to include global AI companies with strong growth potential, reducing its reliance on individual clients while seeking stable, higher-margin business.
The announcement came as the company reported record quarterly revenue but weaker operating profit in this quarter, as AI-related investment weighed on earnings.
The company posted 3.47 trillion won in sales, up 10.7 percent from a year earlier. This marked its sixth consecutive quarterly revenue record, but its operating profit fell 20.9 percent to 451.3 billion won, bringing its operating margin to 13 percent.
By business segment, its platform revenue rose 7.3 percent year-on-year to 1.95 trillion won, supported by advertising growth and increased purchases through its commerce service and membership. Financial platform revenue gained 14.1 percent to 487.7 billion won, while global business revenue increased 15.9 percent to 1.04 trillion won, driven by growth in its consumer-to-consumer businesses, including Wallapop and Poshmark.
Naver also plans to establish a dedicated logistics subsidiary and gradually expand its delivery infrastructure to strengthen its commerce business.
Choi estimated the investment to bolster delivery capabilities would approach 1 trillion won through 2030, adding that the company would seek appropriate financing and revenue structures to limit the impact on cash flow and earnings.
Separately, the company plans to launch a personal AI agent app by the end of this year, allowing users to carry out tasks such as shopping and making reservations through its services, rather than simply receiving search results or recommendations.