Naver clinches $1.5 bill. AI computing deal with US firm
Naver has signed a 2 trillion-won ($1.5 billion) computing services supply contract with a U.S. artificial intelligence (AI) inference company, securing an initial customer for its AI infrastructure business ahead of the commercial launch planned in the first half of next year. “This is a meaningful contract that confirms actual market demand and the initial commercial viability of the AI factory…
Naver, the South Korean tech giant, has secured a significant deal with a U.S. AI inference company, agreeing to a 2 trillion-won ($1.5 billion) contract for computing services. This agreement marks a crucial step for Naver's AI infrastructure business, providing early validation for its upcoming commercial launch. Speaking on the company's third-quarter earnings call, Naver CEO Choi Soo-yeon emphasized the contract's importance as a sign of market demand and the commercial viability of Naver's AI factory business.
The term "AI factory" refers to Nvidia's concept of next-generation data centers capable of generating tokens. The contract specifically covers computing services involving advanced graphics processing units (GPUs), with the first supply expected in 2027. Naver is collaborating with Canadian asset manager Brookfield and U.S. chipmaker Nvidia to develop its AI factory business.
The company plans to expand its capacity from an initial 55 megawatts in 2024 to 200 megawatts by 2028.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Naver clinches $1.5 bil. AI computing deal with US firm koreatimes.co.kr
