Naver's Q2 Revenue Rises 16%, AI Factory with Nvidia to Generate Revenue Next Year

Naver, South Korea's leading tech giant, announced a robust 16.2% increase in second-quarter revenue, reaching 3.39 trillion won (approximately $2.4 billion). This growth was primarily fueled by its core advertising and commerce businesses, which have benefited from the integration of artificial intelligence technologies.

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AI Briefing Ads are the first monetization case demonstrating the new value created by generative AI.

Despite the revenue surge, Naver's operating profit saw a marginal 0.2% decrease, settling at 520.3 billion won. The company attributed this slight dip to increased investments in AI infrastructure necessary to maintain its competitive edge in the rapidly evolving tech landscape. However, net profit rose significantly by 41.6% to 704.3 billion won.

Naver highlighted the success of its AI-powered advertising solutions, noting that its "AI Briefing Ads" demonstrated a click-through rate over 30% higher than traditional search ads and a purchase conversion rate more than three times greater. The company's new AI service, "AI Tab," launched in June, has already surpassed 10 million monthly active users.

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With Nvidia, we have established a foundation to minimize initial capital burdens and rapidly expand the business for the AI Factory project.

Looking ahead, Naver anticipates its AI factory initiative, developed in partnership with Nvidia, will begin generating revenue in the first half of next year. CEO Choi Soo-yeon stated that this strategic partnership minimizes initial capital burdens and facilitates rapid business expansion. The AI factory is projected to commence operations with 55 megawatts of capacity in the first half of 2027.

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The AI Factory will begin generating revenue starting in the first half of 2027, beginning with 55 megawatts.