Key Highlights

  • Nvidia pursues investment opportunity in AI data platform Mercor with proposed $20 billion valuation, representing a 100% increase from its last funding round of $10 billion

  • The startup reported $614 million in gross revenue during H1 2026, achieving an annualized revenue run rate exceeding $2 billion by mid-year

  • Nvidia currently compensates Mercor with millions of dollars for specialized training data utilized in developing its Nemotron suite of open-source AI technologies

  • Investment firm General Catalyst spearheads the funding initiative; Mercor’s client roster includes major AI players such as OpenAI, Google DeepMind, and Anthropic

  • Analysts maintain a Strong Buy rating on NVDA shares with mean price objective of $306.13, suggesting potential gains exceeding 40%

Nvidia is engaged in advanced discussions to make a substantial investment in Mercor, a specialized AI data labeling and talent acquisition platform, with preliminary valuations hovering around $20 billion. This represents a significant leap from the startup’s previous Series C valuation of $10 billion.

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

Venture capital firm General Catalyst is spearheading this latest fundraising initiative. The transaction remains under negotiation and has not yet reached completion.

Three San Francisco-based college dropouts—Brendan Foody, Adarsh Hiremath, and Surya Midha—established Mercor in 2023. The platform facilitates connections between domain specialists across sectors including legal, financial, and scientific disciplines and artificial intelligence laboratories seeking expertise for model refinement.

The chip manufacturer has emerged as one of Mercor’s most significant clients. During the previous quarter, Nvidia allocated millions of dollars to acquire premium-grade training datasets from the startup.

These datasets play a crucial role in developing Nvidia’s Nemotron collection of open-source artificial intelligence models, strategically positioned to rival proprietary platforms developed by organizations such as OpenAI and Google DeepMind.

The business partnership has intensified to the point where multiple Mercor staff members now dedicate nearly their entire workweek to Nvidia-related initiatives.

Explosive Revenue Trajectory at Mercor

The startup has demonstrated remarkable expansion velocity. During the initial six months of 2026 alone, Mercor generated $614 million in gross receipts. By June’s conclusion, the company’s annualized gross revenue trajectory had surpassed the $2 billion threshold, representing more than a twofold increase compared to the previous year.

Proprietary AI development firms continue to constitute the majority of Mercor’s revenue sources. Major technology clients include OpenAI, Google DeepMind, and Anthropic. Nvidia has simultaneously engaged alternative data annotation providers, including Turing and Scale AI.

Strategic Diversification in Nvidia’s Investment Portfolio

This prospective transaction aligns seamlessly with Nvidia’s evolving investment philosophy. The semiconductor leader has expanded well beyond its traditional hardware sales model. The company now actively deploys capital throughout the artificial intelligence ecosystem, spanning infrastructure funds, software platforms, and data providers.

During a single fiscal quarter, Nvidia committed an impressive $18.6 billion toward private enterprises and infrastructure investment vehicles. This represents an unusually aggressive venture capital footprint for a semiconductor manufacturer.

Securing an ownership position in Mercor would provide Nvidia with enhanced control over the data supply chain supporting its proprietary AI model initiatives. The strategic move also ensures preferential access to premium expert-annotated datasets amid escalating industry-wide demand for specialized training information.

NVDA stock experienced a 0.99% decline at the time of this report.

Analyst sentiment toward Nvidia remains overwhelmingly positive. With 34 Buy recommendations and a single Hold rating issued over the most recent three-month period, the equity maintains a Strong Buy consensus rating. The mean analyst price target stands at $306.13, implying potential appreciation exceeding 40% from present trading levels.

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