Nvidia plans to invest in AI data supplier Mercor, which is valued at $20 billion
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Nvidia is seeking to acquire a stake in AI data annotation company Mercor, a move that would double the valuation of this three-year-old startup to $20 billion. This reflects the chip giant's accelerated push into open-source AI models while extending its investment reach upstream in the data supply chain. According to a recent report from technology outlet The Information, insiders reveal that Nvidia has entered discussions to participate in Mercor's new financing round, with existing investor General Catalyst negotiating to lead the round. Last quarter, Nvidia paid Mercor tens of millions of dollars in data services fees, and the business relationship between the two is deepening rapidly. The potential investment comes against the backdrop of Nvidia's overall acceleration in investment activity. In the quarter ending April this year, Nvidia invested $18.6 billion in private companies and infrastructure funds, surpassing the total annual investment of 2025. If Mercor successfully completes this round, it would mark Nvidia's first significant bet in the data services sector. The relationship between Nvidia and Mercor is evolving from a simple procurement contract to equity binding. According to reports, insiders stated that Nvidia has used Mercor's data to train its two newest Nemotron open-source models, with several Mercor employees dedicating nearly all their efforts to...
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