Naver Wins $1.5 Billion AI Deal as Quarterly Profit Falls

South Korean internet giant Naver has signed a 2 trillion won (about US$1.5 billion) contract to supply AI computing services to an unnamed US AI inference company, the Korea Times reported on Thursday, as the group posted a 20.9% fall in third-quarter operating profit.

The deal and the earnings were announced on November 12, alongside plans for a dedicated logistics subsidiary and a personal AI agent app.

First AI factory customer

According to the Korea Times, the contract is the first customer win for Naver’s “AI factory” business, a term Nvidia uses for next-generation data centres that generate tokens. Naver is developing the business with Canadian asset manager Brookfield and Nvidia.

The Seoul Economic Daily reported that the deal covers around 20 megawatts of computing services over five years, with revenue to be recognised once commercial service begins in the first half of 2027. The Korea Times said the first supply will use next-generation GPUs.

Chief executive Choi Soo-yeon said the agreement confirms real market demand and the early commercial viability of the business, according to the Korea Times. She added that Naver is pursuing long-term contracts with major customers and global AI firms to reduce reliance on individual clients.

Naver plans 55 megawatts of capacity next year, expanding to 200 megawatts by 2028, the Korea Times said. The Seoul Economic Daily reported the company is in talks with more than 10 global AI companies over the roughly 180 megawatts remaining in that first phase.

Profit squeezed by AI spending

For the July–September quarter, Naver’s revenue rose 10.7% from a year earlier to 3.47 trillion won, while operating profit dropped 20.9% to 451.3 billion won, according to the Korea Times and the Seoul Economic Daily. IANS, citing Yonhap, reported net profit fell 45.2% to 402.5 billion won.

The company attributed the profit decline to higher investment in AI competitiveness, including infrastructure, content and offline data. The Korea Times put the operating margin at 13%.

By segment, platform revenue grew 7.3% to 1.95 trillion won, the financial platform rose 14.1% to 487.7 billion won, and global business climbed 15.9% to 1.04 trillion won, the Korea Times reported.

Chief financial officer Kim Hee-chul said that, given competition and maturity in the advertising and commerce markets, restoring the margin to 30% will not be easy in the short term, the Seoul Economic Daily reported.

Logistics and AI agent plans

Naver will set up a dedicated logistics subsidiary, with investment expected to approach 1 trillion won through 2030. The Seoul Economic Daily said the model will expand around leased fulfilment centres, with existing partners continuing to handle centre operations and delivery, while Naver leads system and data design.

Choi said the company will seek financing and revenue structures that limit the impact on cash flow and earnings, according to the Korea Times.

Naver also plans to launch a personal AI agent app by the end of 2026 to handle tasks such as shopping and reservations. The Seoul Economic Daily said it will integrate search, shopping, bookings and payments through Naver Pay.

What’s next

Naver expects to launch the AI factory commercially in the first half of 2027, when revenue from the new contract begins. It also aims to add more infrastructure customers, release the AI agent app by year-end and set up the logistics unit.

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