Mercor, which connects AI labs with domain experts for training their foundational AI models, has raised three hundred and fifty million dollars at a ten billion dollar valuation. The company confirmed this funding to TechCrunch. Felicis Ventures, which led the company’s previous one hundred million dollar Series B round at a two billion dollar valuation, is also leading this round. Existing investors Benchmark and General Catalyst, along with new investor Robinhood Ventures, also participated.
TechCrunch reported earlier that Mercor was in talks with investors to raise a Series C at a valuation of ten billion dollars. This was an increase from its target of eight billion dollars a few months prior. The company at the time told potential investors that it already had multiple offers.
Mercor started as an AI-driven hiring platform but quickly changed its focus. It now provides companies with specialized domain experts, such as scientists, doctors, and lawyers, to perform AI model training. The company charges an hourly finder’s fee and matching rate for their work.
The company has also been adding more software infrastructure for reinforcement learning. This is a training method where a model’s decisions are verified or disputed, enabling it to incorporate feedback and improve over time. Mercor intends to eventually build an AI-powered recruiting marketplace.
Mercor’s fortunes improved after leading AI labs like OpenAI and Google DeepMind reportedly cut ties with data-labeling startup Scale AI. This occurred after Meta invested fourteen billion dollars in the data vendor and hired its CEO.
The company apparently told investors that it is on track to hit five hundred million dollars in annual recurring revenue faster than another notable startup. In a blog post, the company stated that while AI has advanced at an astonishing pace, it still struggles with the subtleties that drive economically valuable work. These subtleties include balancing trade-offs, understanding intent, and developing taste.
The startup says it currently pays more than one point five million dollars per day to its contractors. It has more than thirty thousand experts on its roster, whom it pays over eighty-five dollars per hour on average.
Mercor said it will focus on three key areas. These are expanding its talent network, improving its systems for matching contractors with clients, and building new products to automate more of its internal processes.