Naver Wins Saudi Digital Twin Standard, Eyes Robots and Super App

Naver's digital twin platform has been approved by the Saudi Digital Government Agency as a national standard for local governments. The platform, previously adopted in Mecca, Medina, and Jeddah, will be used for urban planning and disaster response. The Saudi Ministry of Autonomous Administration and Housing recommended its use for smart city projects, potentially expanding Naver's market reach.

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.

Naver said in a regulatory filing that it will issue third-party shares worth 1,480,899,838,000 won (about $1 billion) at 204,500 won each, with Nvidia buying a 4.5% stake (7,241,564 shares). Nvidia becomes Naver’s third-largest shareholder. Funds support Naver’s global AI factory construction plans, including a 55MW plant in 1H 2027.

Reuters reported Naver (035420.KS) approved a third-party rights issue of about 1.48 trillion won (about $1 billion). Nvidia will be the sole subscriber, paying 204,500 won per share for a 4.5% stake (7,241,564 shares), with payment due Oct. 30. The deal supports Naver’s $10 billion global AI factory plan with Nvidia and Brookfield.

Naver (035420.KS) rose about 23% in pre-market after disclosing a strategic investment from Nvidia. According to Nextrade, Naver will conduct a third-party allotment rights issue of about 1.4809 trillion won to Nvidia at 204,500 won per share, issuing 7,241,564 shares. The firms plan a global AI factory, with GPU supply from Nvidia and data center work by Naver, targeting 55MW by H1 next year. Naver also plans to cancel 4,901,094 treasury shares worth 1.017 trillion won.

Naver said it secured commitments to expand AI data centers, including $1B from Nvidia and up to $9B from Brookfield Asset Management, to fund its “AI factory” at the GAK Sejong site. The plan starts with 55 MW and targets gigawatt-scale capacity by 2029. Naver also previously obtained a 400B won loan for the project.