Nvidia is in talks to back data-labeling startup Mercor at a $20 billion valuation, The Information reported. Mercor earned tens of millions from Nvidia last quarter.
Alpha Score of 70 reflects strong overall profile with moderate momentum, weak value, strong quality, moderate sentiment.
Nvidia has discussed joining a funding round that would value Mercor, a data labeling provider whose work helps Nvidia develop open-source AI models, at $20 billion, The Information reported Wednesday, citing unnamed sources.
The size of Nvidia's potential investment and the total round could not be learned.
Mercor's revenue from Nvidia has been rising along with the chip company's push into its Nemotron open-source models. Mercor earned tens of millions of dollars from Nvidia in the last quarter, according to the report.
Nvidia also works with Turing and Scale and invested in Scale's 2024 funding round at a $14 billion valuation, the report said.
Neither Nvidia nor Mercor immediately replied to a request for comment.
Mercor was valued at $10 billion in an October Series C that raised $350 million. That was five times its Series B valuation, Mercor Co-Founder and CEO Brendan Foody said in a blog post. "Our vast talent network trains frontier AI models in the same way teachers train students," Foody wrote. "Each project expands what models understand."
The round comes with litigation overhang. At least seven class-action lawsuits were filed against Mercor after a data breach that exposed contractor information including job interview recordings, facial biometric data and screen captures, the Journal reported in April. Mercor told the Wall Street Journal at the time the suits' claims were "speculative" and that it would "present the facts at the appropriate time and place."
Separately, Nvidia said Aug. 10 it partnered with six financial institutions to set up compute platforms designed to pull over $500 billion of third-party capital into AI infrastructure buildouts. The partnerships will create dedicated capital pools for Nvidia customers at attractive rates, the company said.
Nvidia shares slipped 0.99% on the session to $217.56. The stock carries an Alpha Score of 74 out of 100, a "Moderate" rating, on the NVDA stock page.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.