[Column] Naver "Building AI Factory with NVIDIA... Revenue Expected in First Half of Next Year"

Naver announced that it expects revenue from AI Factory, which is being built in partnership with NVIDIA, to start generating from the first half of next year.

On the morning of August 7, Naver CEO Choi Soo-yeon stated during the second quarter earnings conference call that, regarding AI Factory, “We plan to launch services at a scale of 55 megawatts (MW) starting in 2027, then expand to 100 MW by the end of 2027, and further to 200 MW in 2028, ultimately aiming to establish gigawatt-scale infrastructure.”

Jensen Huang, CEO of Nvidia, is shaking hands with Haejin Lee, Chairman of Naver, during his visit to the Naver 1784 building in Seongnam, Gyeonggi Province on the 8th. Photo by Yonhap News.

CEO Choi emphasized that this AI infrastructure investment is “an investment in a structurally growing market, not a one-off business opportunity,” adding, “With the expansion of generative AI, AI transformation across industries, and the growth of inference and AI agents, global demand for AI computing will continue to increase over the medium to long term.”

She further explained, “While there are concerns that the emergence of recent low-cost, high-efficiency models will reduce overall computing usage, we anticipate that as the cost per operation declines, AI adoption, inference, and agents will proliferate, driving overall computational demand.”

In terms of Naver’s competitiveness, she stressed, “Expansion of (AI infrastructure) supply requires significant time due to the need for large-scale power, land, equipment, personnel, and social acceptance. Naver not only has prepared power supply, land, capital partners, and full-stack AI operations capability, but also benefits from technological collaboration with NVIDIA.”

This content was produced with the assistance of AI translation services.