New updates have been reported about Mercor (PC:MRCOR)
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mercor, a company specializing in connecting AI labs with domain experts for foundational AI model training, has successfully raised $350 million, achieving a valuation of $10 billion. This funding round was led by Felicis Ventures, which also spearheaded Mercor’s previous $100 million Series B round. Notable investors such as Benchmark, General Catalyst, and new participant Robinhood Ventures joined this round. Mercor’s valuation has seen a significant increase from its initial target of $8 billion, reflecting strong investor confidence and interest, as the company reportedly received multiple offers.
Originally an AI-driven hiring platform, Mercor pivoted to providing specialized domain experts, such as scientists and doctors, to train AI models, charging an hourly fee for these services. The company is expanding its software infrastructure to support reinforcement learning, a method that enhances AI models through feedback. Mercor’s strategic direction includes developing an AI-powered recruiting marketplace. The company has gained momentum after AI labs like OpenAI and Google DeepMind distanced themselves from Scale AI, following Meta’s substantial investment in the data vendor. Mercor is on track to reach $500 million in annual recurring revenue, outpacing competitors like Anysphere. With over 30,000 experts earning an average of $85 per hour, Mercor is focusing on expanding its talent network, refining client-contractor matching systems, and automating processes to enhance efficiency.