Nvidia explores investment in AI data supplier Mercor valued at $20B

Nvidia is in discussions to invest in Mercor, the AI data marketplace that connects companies with human experts who label and generate training data for AI models. The talks are reportedly taking place at a $20 billion valuation, which would represent a clean doubling of Mercor’s worth since its Series C round just nine months ago. From $10B to $20B in nine months Mercor raised $350 million in its Series C funding round in October 2025, which valued the startup at $10 billion. That round was backed by Felicis Ventures and Benchmark. The discussions appear to be strategic rather than part of a broader fundraising round, which raises the possibility that Nvidia is positioning for deeper integration with Mercor’s services, or potentially eyeing future acquisition activity down the line. No specific deal terms have been confirmed, and there’s no indication the investment has closed. The business behind the valuation Mercor generated $614 million in gross revenue during just the first half of the year. By June 2026, its annualized gross revenue was projected to reach $2 billion. Mercor was founded by Brendan Foody, Adarsh H., and Surya Midha, all of whom reportedly became some of the w...