Mercor Pursues $10 Billion Valuation in Series C Funding Round

Mercor, a startup co-founded by three Thiel Fellows, is pursuing a Series C funding round targeting a $10 billion valuation. The company has increased its valuation target from $8 billion and has received offers reaching the $10 billion threshold from multiple venture capital firms. Mercor provides specialized contractors to perform AI model training for an hourly finder’s fee and matching rate, serving major AI labs including Amazon, Alphabet, Meta, Microsoft, OpenAI, Tesla, and NVIDIA. The company's revenue has grown to $450 million in annualized run-rate revenue, with explosive growth from $75 million ARR reported in February.

Mercor, a startup co-founded by three Thiel Fellows, is pursuing a Series C funding round with a target valuation of $10 billion. The company, which provides specialized contractors to perform AI model training for an hourly finder's fee and matching rate, has seen a significant increase in its valuation target from $8 billion to $10 billion Sources: AI training startup Mercor eyes $10B+ valuation on $450 million run rate^[2].

Mercor serves major AI labs including Amazon, Alphabet, Meta, Microsoft, OpenAI, Tesla, and NVIDIA. The company's revenue has grown to $450 million in annualized run-rate revenue (ARR), a substantial increase from the $75 million ARR reported in February Sources: AI training startup Mercor eyes $10B+ valuation on $450 million run rate^[2].

Felicis, a returning investor, is considering doubling down on the company for the Series C. The company has already received multiple offers from venture capital firms valuing it at as much as $10 billion, and has brought on at least two new investors to raise funds for the potential deal through special purpose vehicles (SPVs) Sources: AI training startup Mercor eyes $10B+ valuation on $450 million run rate^[2].

Mercor's rapid growth and the high demand for its services reflect the increasing importance of AI model training in the tech industry. The company's ability to connect domain experts with AI labs is a unique value proposition that has attracted significant interest from investors.