On August 20, The Information reported that NVIDIA has engaged in discussions regarding an investment in data annotation service provider Mercor, according to a source familiar with the matter. Mercor assists the chip designer in developing open-source AI models. This investment will be part of a funding round that values Mercor at $20 billion. Existing investor General Catalyst has been negotiating to lead this funding round. In the past, most of Mercor's revenue came from closed-source AI model developers like OpenAI, Google, and Anthropic. However, as NVIDIA prioritizes the development of the Nemotron open-source model, Mercor's revenue from NVIDIA is increasing. Nemotron aims to compete with the world's most advanced open-source models. According to insiders, NVIDIA paid Mercor tens of millions of dollars last quarter. In addition to Mercor, NVIDIA also utilizes data from other suppliers such as Turing and Scale, and has its own internal data team.