TLDR
- Nvidia is in talks to invest in AI data startup Mercor at a $20 billion valuation, double its previous $10 billion valuation
- Mercor generated $614 million in gross revenue in the first half of 2026, with an annualized run rate past $2 billion by June
- Nvidia already pays Mercor millions for training data used in its Nemotron open-source AI models
- General Catalyst is leading the funding round; Mercor also works with OpenAI, Google DeepMind, and Anthropic
- Wall Street has a Strong Buy consensus on NVDA with an average price target of $306.13, implying over 40% upside
Nvidia is in talks to invest in Mercor, an AI data labeling and recruitment startup, at a valuation of around $20 billion. That would be double the $10 billion valuation Mercor received during its Series C round.
NVIDIA EYES MERCOR INVESTMENT$NVDA has discussed investing in AI data supplier Mercor as part of a funding round that would value the startup at $20 billion, The Information reports.
Mercor hires specialists across fields such as science, law and finance to train and evaluate… pic.twitter.com/xDqeh2XOyW
— Wall St Engine (@wallstengine) August 19, 2026
General Catalyst is leading the latest funding round. The deal has not yet closed.
Mercor was founded in 2023 by Brendan Foody, Adarsh Hiremath, and Surya Midha, three college dropouts based in San Francisco. The company connects human experts in fields like law, finance, and science with AI labs to help train advanced models.
Nvidia is already one of Mercor’s biggest customers. Last quarter, it paid the startup millions of dollars for high-quality training data.
That data is being used to build Nvidia’s Nemotron family of open-source AI models, which are designed to compete with closed-source systems from companies like OpenAI and Google DeepMind.
The relationship has grown close enough that several Mercor employees now work almost full-time on Nvidia projects.
Mercor’s Revenue Growth
Mercor has been growing fast. It pulled in $614 million in gross revenue in just the first half of 2026. By June, its annualized gross revenue run rate had crossed $2 billion, more than doubling year over year.
The company still earns most of its revenue from closed-source AI developers. OpenAI, Google DeepMind, and Anthropic are among its biggest clients. Nvidia has also used other data labeling firms, including Turing and Scale AI.
Nvidia’s Expanding Investment Strategy
This potential deal fits a broader pattern for Nvidia. The company is no longer focused solely on selling chips. It has been actively investing across the AI stack, from infrastructure funds to software platforms to data suppliers.
In one fiscal quarter alone, Nvidia deployed $18.6 billion into private companies and infrastructure funds. That is a large venture footprint for a chipmaker.
Backing Mercor would give Nvidia a more direct stake in the data pipeline that feeds its own AI model development. It also helps lock in access to high-quality training data as demand for expert-labeled data continues to rise.
NVDA stock was down 0.99% at the time of reporting.
Wall Street remains broadly bullish on Nvidia. Based on 34 Buy ratings and one Hold over the past three months, the stock carries a Strong Buy consensus. The average analyst price target sits at $306.13, pointing to over 40% upside from current levels.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
