Nvidia is in talks to invest in Mercor as part of a financing round that would value the data-labeling startup at about $20 billion, with existing investor General Catalyst discussing a lead role in the fundraising. Mercor has become a fast-growing supplier of expert-generated training data for AI labs, and its ties with Nvidia have deepened as the chip designer expands work on its Nemotron family of open-source AI models. Nvidia has become one of Mercor’s largest customers, paying the company tens of millions of dollars last quarter, while Mercor reported $614 million in gross revenue in the first half of the year and an annualized gross revenue run rate above $2 billion by June. The potential deal would also fit Nvidia’s broader push beyond chips into the AI stack through investments in data, infrastructure and software. The talks remain ongoing and no final agreement has been reached.