Nvidia Plans to Invest in AI Data Labeling Company Mercor, Valuation Expected to Reach $20 Billion

BlockBeats News, August 20th - According to The Information, Nvidia is in discussions with the data labeling service provider Mercor regarding investment. Mercor assists the chip designer in developing open-source AI models.

This investment would be part of Mercor's $20 billion valuation financing round. Existing investor General Catalyst has been in talks to lead this round of financing.

Most of Mercor's previous revenue came from closed-source AI model developers such as OpenAI, Google, and Anthropic. However, as Nvidia prioritizes the development of the Nemotron open-source model, Mercor's revenue from Nvidia is growing.

The Nemotron aims to compete with the world's most advanced open-source models. According to sources, Nvidia paid Mercor tens of millions of dollars in the last quarter. In addition to Mercor, Nvidia also uses data from other providers such as Turing and Scale, and also has its own internal data team.