New updates have been reported about Mercor (PC:MRCOR)
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Mercor, a burgeoning startup specializing in connecting AI companies with domain experts, is in talks with investors for a Series C funding round, aiming for a valuation of $10 billion. This marks a significant increase from its previous $2 billion valuation during its Series B round in February, led by Felicis. The company has reportedly received multiple offers from venture capitalists, with some valuing it as high as $10 billion. Despite these discussions, Mercor’s CEO Brendan Foody has stated that the company is not actively seeking to raise funds, although it continues to receive offers monthly.
Founded in 2022, Mercor has rapidly scaled its operations, with its annualized run-rate revenue nearing $450 million. The company has achieved profitability, generating $6 million in profit in the first half of the year, contrasting with competitors like Anysphere, which remains unprofitable. Mercor’s revenue model involves charging companies for access to specialized domain experts who assist in AI model training. The firm is also diversifying its offerings by developing software infrastructure for reinforcement learning and planning to launch an AI-powered recruiting marketplace. However, Mercor faces competition from firms like Surge AI and Scale AI, and a legal challenge from Scale AI over alleged misappropriation of trade secrets. To bolster its leadership, Mercor recently appointed Sundeep Jain, a former Uber executive, as its first president. Despite these challenges, Mercor remains a key player in the AI domain, supplying data labeling services to major tech companies including OpenAI, Google, and Meta.