Mercor Aims for $10B Valuation on $450M Run Rate

Mercor, an AI training startup that connects companies with domain experts, is in talks for a Series C round, targeting a $10 billion+ valuation. The company currently has a $450 million run-rate revenue and has told investors it's on track to hit $500 million ARR faster than Anysphere. Mercor previously raised $100 million in a Series B round at a $2 billion valuation.

Mercor, a rapidly growing AI training startup, is in talks to secure a Series C funding round with a valuation target of $10 billion or more. The company, founded by three Thiel Fellows who dropped out of Harvard, has seen explosive growth since its inception in 2022, with a current annualized run-rate revenue (ARR) of $450 million. This represents a significant increase from its Series B funding of $100 million at a $2 billion valuation in February 2025 Peter Thiel-Backed Fellows' Startup Mercor Targets $10 Billion Valuation As OpenAI, Meta, Tesla Turn To Its AI Training Experts: Report^[3].

Mercor connects companies with domain experts to perform AI model training, earning revenue through an hourly finder's fee and matching rate for the work of scientists, doctors, and lawyers. The company has told investors it is on track to hit the $500 million ARR milestone faster than Anysphere, another AI startup that achieved $500 million in ARR about a year after its product launch Sources: AI training startup Mercor eyes $10B+ valuation on $450M run rate^[2].

The company serves major AI labs including Amazon, Google, Meta, Microsoft, and OpenAI, with a significant portion of its revenue coming from OpenAI. Mercor has been diversifying its business model by adding software infrastructure for reinforcement learning and plans to eventually build an AI-powered recruiting marketplace Sources: AI training startup Mercor eyes $10B+ valuation on $450M run rate^[2].

Despite competition from other data labeling firms like Surge AI and Scale AI, Mercor has been proactive in attracting venture capital firms with offers reaching the $10 billion threshold. The company has been turning down offers and has not been actively seeking funding, but the increased demand from AI companies for specialized training experts has led to this round of discussions Sources: AI training startup Mercor eyes $10B+ valuation on $450M run rate^[2].

Mercor's recent growth and strategic expansion have attracted attention from investors, with the company's valuation target reflecting its potential in the AI training market. The Series C funding round could provide Mercor with the capital needed to further grow its business and solidify its position in the industry Sources: AI training startup Mercor eyes $10B+ valuation on $450M run rate^[2].