Naver is advancing its AI factory buildout despite a dent in profits, retiring about 1 trillion won ($720 million) worth of treasury shares even as its stock sank 7.5 percent Friday. South Korea's largest internet platform reported second-quarter revenue rose 16.2 percent from a year earlier to 3.389 trillion won ($2.45 billion), powered by its core platform business and global consumer-to-consumer operations. Operating profit was virtually flat at 520.3 billion won, down 0.2 percent from a year earlier, as heavy spending on AI infrastructure, content and data offset revenue growth. Its operating margin slipped to 15.4 percent from 17.9 percent, while operating expenses stretched 19.8 percent. Naver is developing an "AI factory" with Nvidia and Brookfield, betting large-scale computing capacity can become a standalone business. The buildout is scheduled in stages, beginning with 55 megawatts of capacity in the first half of 2027, expanding to 100 MW by the end of that year and 200 MW in 2028. CEO Choi Soo-yeon argued cheaper AI models should broaden adoption and create more demand for computing power. Nvidia is investing roughly $1 billion directly in Naver, while Brookfield is in talks to commit as much as $9 billion to a special-purpose vehicle owning the GPUs and data centers. Naver would retain full ownership of the operating company selling computing capacity,