Naver's AI Factory Project with Nvidia Set to Launch in 2027

Naver's artificial intelligence factory project with Nvidia is expected to start generating revenue in the first half of 2027. The facility, which will provide large-scale computing capacity for AI, will launch with 55 megawatts of capacity that year and expand to 100 MW by the end of 2027.

Naver Chief Executive Officer Choi Soo-yeon said the factory's growth would be driven by increasing demand for AI computing, which is expected to continue growing over the mid- to long term. She dismissed concerns that cheaper and more efficient AI models could eventually curb computing demand.

The partnership between Naver and Nvidia includes a $1 billion investment in Naver by Nvidia. The facility will be run through a wholly owned subsidiary of Naver, which will book the computing revenue and related costs. Choi said Naver already has power and sites in place for the factory and has secured capital partners.

Naver plans to maintain high use rates at the factory by combining demand from external customers with its own need for computing resources. The company aims to achieve higher long-term profitability, with margins expected to reach double digits and eventually exceed 20 percent.