Mercor’s Valuation Soars to $10B in $350M Series C
▼ Summary
– Mercor raised $350 million at a $10 billion valuation to connect AI labs with domain experts for training foundational AI models.
– The funding round was led by Felicis Ventures with participation from existing investors Benchmark and General Catalyst, plus new investor Robinhood Ventures.
– The company pivoted from an AI-driven hiring platform to providing specialized experts like scientists and lawyers for AI model training, charging hourly fees for matching and services.
– Mercor pays over $1.5 million daily to its 30,000+ contractors, who earn an average of over $85 per hour, and aims to expand its talent network and improve client matching.
– The startup plans to focus on enhancing its software infrastructure for reinforcement learning and building new products to automate processes, targeting rapid growth in annual recurring revenue.
Mercor, a platform that connects artificial intelligence labs with specialized domain experts to train foundational AI models, has secured a massive $350 million in Series C funding, catapulting its valuation to an impressive $10 billion. This substantial financial injection marks a significant milestone for the company, which has seen its worth multiply rapidly since its previous funding round.
Leading the investment is Felicis Ventures, the same firm that headed Mercor’s $100 million Series B at a $2 billion valuation. They are joined by returning supporters Benchmark and General Catalyst, alongside new participant Robinhood Ventures. Reports from September indicated Mercor was negotiating a Series C round targeting a $10 billion valuation, up from an earlier goal of $8 billion, and the company had already received multiple investor offers at that stage.
Originally launched as an AI-powered hiring platform, Mercor quickly shifted its business model. It now focuses on providing companies with access to highly skilled professionals, including scientists, doctors, and lawyers, who perform critical AI model training. The company charges an hourly matching and finder’s fee for connecting these experts with client projects.
Mercor has been actively enhancing its software infrastructure to support reinforcement learning, a technique where model decisions are validated or challenged, allowing the AI to learn from feedback and progressively improve. Looking ahead, the company plans to develop a fully AI-driven recruiting marketplace.
The startup’s rapid ascent gained momentum after leading AI labs such as OpenAI and Google DeepMind reportedly ended relationships with data-labeling firm Scale AI. This shift occurred following Meta’s $14 billion investment in Scale AI and the hiring of its CEO.
Mercor informed investors that it is on pace to achieve $500 million in annual recurring revenue faster than Anysphere, the startup behind Cursor, which famously reached that milestone about a year after launching its core product.
In a blog post shared with TechCrunch, Mercor reflected on the AI industry’s evolution, noting, “Since we founded Mercor almost three years ago, AI has advanced at an astonishing pace. But it still struggles with the subtleties that drive economically valuable work, balancing trade-offs, understanding intent, developing taste, and deciding what should be done, not just what can be done.”
Currently, the company disburses over $1.5 million daily to its contractor network. It boasts a roster of more than 30,000 experts, who earn an average of over $85 per hour for their contributions.
Moving forward, Mercor will concentrate on three strategic priorities: growing its talent network, refining its contractor-client matching systems, and developing new products to further automate internal processes.
(Source: TechCrunch)
