Mercor: The AI Startup Powering Model Training with a $10B+ Valuation Goal
Mercor, a rising star in the AI ecosystem, is making waves by connecting tech giants like OpenAI, Meta, Amazon, Google, Microsoft, Tesla, and Nvidia with specialized domain experts—think scientists, doctors, and lawyers—who refine and train cutting-edge AI models.
Founded in 2022 by Thiel Fellows and Harvard dropouts Brendan Foody (CEO), Adarsh Hiremath (CTO), and Surya Midha (COO), this San Francisco-based startup is now eyeing a jaw-dropping $10 billion-plus valuation in its upcoming Series C funding round, a leap from its $8 billion target just months ago.
The company’s meteoric rise is fueled by its innovative business model, charging hourly finder’s fees and matching rates for placing experts with AI labs.
Mercor’s annualized run-rate revenue has skyrocketed to $450 million, up from $75 million in February 2025 and $100 million in March, with a reported $6 million in profit in the first half of 2025—a rarity among AI startups.
The Series C round, still in negotiation, has attracted multiple offers, with existing investor Felicis considering a deeper stake and at least two new investors joining via special purpose vehicles (SPVs). This follows a $100 million Series B round in February at a $2 billion valuation, led by Felicis.
Mercor’s ambitions don’t stop at its current success. The startup is diving into reinforcement learning (RL) infrastructure, a method that enhances AI models by incorporating feedback to improve decision-making over time.
It also plans to launch an AI-powered recruiting marketplace, aiming to reshape how talent meets tech. However, competition looms large, with rivals like Surge AI targeting a $25 billion valuation and Scale AI, which recently sued Mercor for alleged trade secret theft, expanding into RL services.
With Sundeep Jain, former Uber chief product officer, joining as president, Mercor is poised to scale new heights. Despite CEO Foody’s claim that they “haven’t been trying to raise at all,” the startup’s trajectory suggests it’s a hot ticket in the AI investment frenzy.
FAQ
What does Mercor do?
Mercor connects AI companies with domain experts, such as scientists and lawyers, to train and refine AI models, charging hourly fees for placements.
Who are Mercor’s investors?
Felicis led Mercor’s $100 million Series B and is considering further investment in the Series C, with new investors joining via SPVs.
Image Source:Photo by Unsplash
