# Nvidia Weighs Mercor Stake at $20B, Doubling Valuation in 9 Months

By Ray Termsheet · 2026-08-25 · Deals & Funding · https://datacommenter.com/nvidia-weighs-mercor-stake-at-20b-doubling-valuation-in-9-months/
About the author: Follows the money in the data economy: venture rounds, M&A, and strategic stakes across data vendors and infrastructure.

> Nvidia is reportedly in talks to invest in AI data-labeling startup Mercor at a $20 billion valuation, double its $10 billion Series C mark from October 2025, according to an…

Original reporting: [cryptobriefing.com](https://cryptobriefing.com/nvidia-mercor-ai-data-investment/)
_AI-assisted commentary, editorially reviewed. Quoted excerpts belong to the original outlet._

Here’s what’s solid: Mercor raised $350 million at a $10 billion valuation in October 2025, and multiple outlets independently confirm Nvidia is now discussing a stake that would value the data-labeling startup at $20 billion, per an August 19, 2026 report from The Information cited by cryptobriefing.com, Yahoo Finance, PYMNTS, and Biggo. That’s the whole confirmed skeleton — everything else is sourced to unnamed people familiar with the matter, and neither Nvidia nor Mercor has confirmed a deal exists.

Where cryptobriefing’s account thins out is exactly where the independent reporting gets specific. Yahoo Finance, Stocktwits, and Biggo all name General Catalyst — an existing Mercor investor — as the party negotiating to lead the round, a detail absent from the original story. They also quantify what cryptobriefing leaves vague: Nvidia paid Mercor “tens of millions of dollars” last quarter for expert-labeled data feeding its Nemotron open-source models, not just “millions.” That gap matters because it changes the read from casual customer to entrenched, escalating buyer — the kind of relationship that typically precedes an equity check, not follows one.

> A doubling to $20 billion in nine months isn’t a valuation — it’s a bet that human-expert data for open-source models is scarce enough that Nvidia would rather own a slice of the supplier than just pay the invoice.

The revenue numbers are the one place multiple sources converge cleanly: $614 million in first-half gross revenue and a $2 billion annualized run rate by June 2026, reported consistently across cryptobriefing and Biggo. Biggo goes further with profitability projections — $226 million in operating profit this year, $1.7 billion next — that Mercor reportedly told investors directly, which puts them a notch below independently verified and a notch above rumor. PYMNTS adds context cryptobriefing skips entirely: Mercor was hit with at least seven class-action suits this year over a contractor data breach involving biometric data and interview recordings, a liability overhang that doesn’t disappear because a chipmaker wants in.

What would actually validate this story is simple and hasn’t happened: a signed term sheet, an SEC disclosure from Nvidia (which already reported $18.6 billion in private-equity investments for the quarter ending April, per Biggo and Stocktwits), or an on-record confirmation from either company. Until then, this is a well-sourced rumor with real revenue numbers attached — worth watching for whether General Catalyst actually closes the round, and whether Nvidia’s stake, if it materializes, comes with the kind of exclusivity that would squeeze rivals like Scale AI and Turing out of Nemotron’s data pipeline.

> 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.
> — [cryptobriefing.com](https://cryptobriefing.com/nvidia-mercor-ai-data-investment/)

[Read the full story at cryptobriefing.com →](https://cryptobriefing.com/nvidia-mercor-ai-data-investment/)

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Cite this analysis: https://datacommenter.com/nvidia-weighs-mercor-stake-at-20b-doubling-valuation-in-9-months/
Cite primary facts: https://cryptobriefing.com/nvidia-mercor-ai-data-investment/
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