Mercor, the fast-growing AI startup connecting labs with domain experts to train foundational AI models, has officially quintupled Mercor valuation to $10 billion following a $350 million Series C funding round.
The round was led by Felicis Ventures, the same firm that headed Mercor’s previous $100 million Series B at a $2 billion valuation. Other major participants included Benchmark, General Catalyst, and new investor Robinhood Ventures.
A Fivefold Jump in Mercor Valuation
The new funding confirms Mercor’s meteoric rise. Just months ago, the company was in talks to raise funds at an $8 billion valuation — and now it has exceeded that target by 25%, hitting $10 billion.
According to sources cited by TechCrunch, the company reportedly received multiple offers from top-tier investors even before finalizing the round.
From AI Hiring Platform to AI Model Training Powerhouse
Originally launched as an AI-driven hiring platform, Mercor quickly pivoted to providing companies with domain experts — including scientists, doctors, and lawyers — who assist in training large-scale AI models.
These experts are matched with AI labs through Mercor’s platform, where the company earns revenue via hourly finder’s fees and matching rates.
This strategic shift has proven highly lucrative, as the company now processes over $1.5 million in daily payments to its 30,000+ global experts, averaging $85/hour per contractor.
Building Reinforcement Learning Infrastructure
In addition to talent matching, Mercor has been building out its reinforcement learning (RL) infrastructure — a system that allows AI models to learn by receiving human feedback on their decisions.
This technology helps refine generative AI systems to better handle nuanced, high-value tasks — such as balancing trade-offs, understanding intent, and improving decision-making.
According to Mercor’s founders, this progress brings the company closer to creating a fully AI-powered recruiting and training marketplace.
Market Impact and Future Plans
Mercor’s rise comes as OpenAI, Google DeepMind, and other leading AI labs seek more reliable data training partners. After recent shakeups involving Scale AI and Meta’s $14 billion data investment, Mercor has emerged as a trusted alternative in the AI data ecosystem.
The company told investors it’s on track to hit $500 million in annual recurring revenue (ARR) — potentially faster than Anysphere, the startup behind Cursor, which famously reached that mark within a year of launching.
Moving forward, Mercor plans to focus on:
- Expanding its talent network of domain specialists
- Improving AI-driven matching systems between experts and clients
- Automating its internal processes with new AI tools
As AI development accelerates globally, Mercor’s $10B valuation signals investor confidence in its unique approach to human-AI collaboration and model refinement.
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