Naver signed an approximately 2 trillion won ($1.5 billion) computing services contract with an unnamed US company, its first AI factory customer, chief executive Choi Soo-yeon told a third-quarter earnings call on 12 November, The Korea Herald reported. The customer is an AI inference company, DigitalToday reported. The South Korean internet company will supply about 20 megawatts of capacity over four to five years and expects revenue to begin in the first half of 2027.
Key points
- The US contract covers about 20 MW; Naver is negotiating with prospective customers for the remaining 180 MW of planned capacity.
- Naver expects its AI factory to begin operating at 55 MW in the first half of 2027 and reach 200 MW by 2028.
- Third-quarter revenue rose 10.7 percent, while operating profit fell 20.9 percent as costs increased.
- Naver plans a logistics subsidiary and an expansion that Choi said could cost nearly 1 trillion won through 2030.
Naver contracts 20 MW of AI capacity
The contract gives Naver a customer for part of the AI factory it is developing with Brookfield and Nvidia. Naver previously signed a $9 billion computing infrastructure agreement with Brookfield. Nvidia subsequently completed a $1 billion payment for a 4.13 percent stake in Naver, while KB Kookmin Bank agreed to lead a 11 trillion won loan for the project.
The first phase is scheduled to open with 55 MW in the first half of 2027. Naver plans to reach 200 MW by 2028. Chief financial officer Kim Hee-cheol said the company was in talks with more than 10 prospective customers outside Asia, including major AI model developers, about the remaining 180 MW. Those discussions sit alongside the signed US supply contract.
Naver expects to reach 100 MW by the end of 2027 and has a longer-term goal of building 1 gigawatt of AI computing infrastructure, Chosun Biz reported. Choi said Naver was negotiating prices with Nvidia for a server purchase order. The company is seeking access to Vera Rubin GPUs for the project.
Kim targets AI factory profit in 2027
The US customer will receive a mix of B300 and Vera Rubin GPUs, according to Chosun Biz. The contract runs for four to five years depending on the chip type, and Naver plans to begin supplying equipment in stages from 2027. Kim said the company had finalised one customer contract so far and would set out its specific profit contribution after completing further deals.
Kim expects the AI factory business to make an operating profit in 2027 after its costs and related expenses. He said equipment would arrive two to three months before service starts, holding down margins in the first year. From the following year, when operations are running more fully, he expects margins well into double digits.
Naver profit falls as revenue rises
Naver reported third-quarter revenue of 3.5 trillion won, up 10.7 percent from a year earlier, while operating profit fell 20.9 percent to 451 billion won. Spending on AI infrastructure, content and offline data weighed on earnings, The Korea Herald reported. Platform revenue rose 7.3 percent, financial platform revenue increased 14.1 percent and global ventures revenue grew 15.9 percent.
The company is also planning a personal AI agent app that would connect search, shopping, local services, reservations and payments. Choi said traffic from its AI Tab to shopping and local services had nearly doubled since launch, with transaction value also growing.
Choi says Naver logistics could require nearly 1 trillion won
Naver plans to establish a logistics subsidiary and expand its use of leased fulfilment centres. Partners would operate warehouses and handle deliveries, while Naver would use shopping data to forecast demand and determine where inventory is held. The plan would extend the company’s role in commerce beyond its online services.
Choi estimated that the expansion could require nearly 1 trillion won through 2030. She said the company would structure financing to limit the effect on cash flow and earnings.
