Naver-Nvidia AI factory to generate revenue from 2027
Naver said on its Q2 earnings call that its AI factory partnership with Nvidia is expected to start generating revenue in the first half of 2027. The facility will launch at 55 MW in 2027, expand to 100 MW by year end and 200 MW in 2028, with margins expected to reach double digits then exceed 20%. Naver reported Q2 revenue of 3.39 trillion won and operating profit of 520.3 billion won.
How this was made
The 30-second read
Why it matters
The key new trading input is the explicit revenue start window (H1 2027) and a capacity ramp plan (55 MW in 2027 to 200 MW in 2028), alongside margin expectations and a 5 to 6 year contract strategy to manage financing risk.
Market read
This is a concrete, multi-year AI infrastructure monetization roadmap that can shift investor expectations for Naver’s profitability profile, even if near-term financial impact is limited.
What to watch
The article does not specify customer pricing, utilization assumptions, or how much of the capacity is expected to be filled by external demand versus Naver’s own needs.
Background
Naver is expanding beyond advertising and commerce by building an AI factory with Nvidia, using a wholly owned subsidiary to run the infrastructure and book computing revenue.
Ticker impact
Naver said Nvidia will invest $1 billion directly in Naver to support an AI factory, with revenue booked by Naver’s subsidiary.
Likely modest positive read-through for NVDA tied to longer-dated AI infrastructure demand, though timing is 2027+.
The article discloses a specific Nvidia investment amount and a multi-year infrastructure ramp, but it does not quantify near-term revenue impact for Nvidia itself.
Naver expects its Nvidia-backed AI factory to start generating revenue in the first half of 2027, ramping from 55 MW in 2027 to 200 MW in 2028.
Positive medium-term sentiment for Naver’s AI infrastructure monetization, with limited immediate earnings impact given 2027 revenue timing.
The article includes specific start timing (H1 2027), capacity milestones (55 MW, 100 MW, 200 MW), margin expectations (double digits, then >20%), and contract-length strategy (5 to 6 years).
Market effects
Reinforces the trend of hyperscale-style AI capacity being monetized via dedicated infrastructure operators and long-term customer contracts.
Highlights South Korea’s role in AI compute buildouts, potentially increasing regional competition for power, land, and chip supply.
Supports the global demand thesis for inference and AI agents by framing capacity expansion through 2028 and beyond.
Counterpoint
Margin targets may be optimistic if power, land, and chip procurement costs rise faster than utilization and pricing.
Key entities
- companyNaver
Korean platform company disclosing AI factory revenue timing, capacity milestones, margin targets, and financing approach with Nvidia.
- companyNvidia
Provides a $1 billion direct investment into Naver to support the AI factory partnership.
- executiveChoi Soo-yeon
Naver CEO who outlined the AI factory launch and demand outlook on the earnings call.
- executiveKim Hee-cheol
Naver CFO who discussed expected margin trajectory for the AI factory operator.
