Nvidia Discusses Funding Its AI Data Supplier Mercor at a $20 Billion Valuation

Nvidia has discussed an investment in Mercor, a data labeling provider that helps the chip designer develop its open-source AI models, according to a person with knowledge of the process. The investment would be part of a $20 billion-valuation round. Existing investor General Catalyst has been in talks to lead the round.

Historically, most of Mercor’s revenue has come from the makers of closed-source AI models such as OpenAI, Google and Anthropic, The Information previously reported. But Mercor’s revenue from Nvidia is growing as the chip firm prioritizes the development of its Nemotron open-source models, which aim to compete with the world’s best open models.