Nvidia weighs a $20 billion bet on Mercor, its own AI data supplier
Nvidia (NASDAQ: NVDA) wants to put money into Mercor, a company that it buys training data for AI models from.
The deal could value Mercor at $20 billion, but some experts worry that Nvidia’s “circular financing” could create risks for the financial system.
Is Nvidia funding its suppliers?
Nvidia is reportedly in talks to invest in Mercor, which sells the training data that AI models are built on and is one of the inputs Nvidia’s customers need to make its chips useful.
Venture capital firm General Catalyst is discussing leading the funding round. Mercor’s revenue crossed $2 billion in yearly revenue in June 2026. The company made $614 million in the first half of the year.
Mercor was valued at $10 billion after its Series C round in October 2025. A deal at $20 billion would double that in just nine months. Mercor’s customers already include OpenAI, Google (NASDAQ: GOOGL), and Anthropic. Nvidia pays Mercor to help develop its Nemotron open-source AI models.
Nvidia also signed deals with Apollo, BlackRock (NYSE: BLK), Blackstone (NYSE: BX), Brookfield, Goldman Sachs (NYSE: GS), and KKR totaling up to $500 billion in order to mobilize money for AI infrastructure.
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