Naver Signs $1.5 Billion AI Computing Services Contract with U.S. Inference Firm

Naver has signed a 2 trillion-won ($1.5 billion) computing services supply contract with a U.S. artificial intelligence inference company, securing the first confirmed customer for its AI infrastructure business ahead of a commercial launch planned for the first half of next year. The deal marks a significant milestone for the South Korean internet giant as it seeks to establish itself as a major player in the rapidly expanding market for AI-dedicated data center capacity.

The contract covers computing services involving next-generation graphics processing units, with initial supply scheduled for 2027. Naver is developing its AI factory business in partnership with Canadian asset manager Brookfield and U.S. chipmaker Nvidia. The company plans to expand capacity from an initial 55 megawatts next year to 200 megawatts by 2028, and said it has already secured contracted data center capacity exceeding its initial 200-megawatt target for 2028. Naver 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.

"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." The AI factory concept, a term coined by Nvidia, refers to next-generation data centers designed to generate tokens for AI inference workloads. 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 reliance on individual clients while seeking stable, higher-margin business.

The announcement came as Naver reported record quarterly revenue but weaker operating profit, as AI-related investment weighed on earnings. The company posted 3.47 trillion won in sales, up 10.7 percent from a year earlier, marking its sixth consecutive quarterly revenue record. However, operating profit fell 20.9 percent to 451.3 billion won, bringing its operating margin to 13 percent. By business segment, 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 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. The AI infrastructure contract signals Naver's ambition to diversify beyond its core platform and search businesses into the high-growth AI computing market, where demand for inference capacity is surging globally.