mercor quintuples valuation to $10b with $350m series c

Mercor Secures $350 Million Funding at $10 Billion Valuation

Mercor, a company facilitating connections between AI laboratories and specialized professionals for the purpose of training advanced AI models, has successfully raised $350 million. This funding round results in a company valuation of $10 billion, as confirmed by the company to TechCrunch.

Investment Details

Felicis Ventures, who previously led Mercor’s $100 million Series B funding round at a $2 billion valuation, is again leading this investment. Existing investors Benchmark and General Catalyst are also participating, alongside new investor Robinhood Ventures.

Reports surfaced in September indicating Mercor was engaged in discussions with investors to secure a Series C funding round. Initial valuation targets were set at $8 billion, but were later increased to $10 billion as the company received multiple investment offers.

Company Evolution

Initially launched as an AI-powered hiring platform, Mercor strategically shifted its focus. The company now specializes in providing businesses with access to domain experts – including scientists, medical professionals, and legal experts – to facilitate AI model training.

Mercor charges a combination of hourly finder’s fees and matching rates for the services of these experts. Furthermore, the company is actively developing enhanced software infrastructure to support reinforcement learning techniques.

Market Dynamics and Growth

Mercor’s growth has been notably influenced by recent developments within the AI industry. Leading AI labs, such as OpenAI and Google DeepMind, reportedly ended their partnerships with data-labeling company Scale AI following Meta’s substantial $14 billion investment and subsequent hiring of Scale AI’s CEO.

The company projects it will achieve $500 million in Annual Recurring Revenue (ARR) at a pace exceeding that of Anysphere, the company behind Cursor, which reached the same milestone approximately one year after its core product launch.

Company Vision

“Over the nearly three years since Mercor’s founding, artificial intelligence has progressed at a remarkable rate,” the company stated in a blog post shared with TechCrunch. “However, it continues to face challenges in mastering the nuances essential for economically valuable work – including trade-off analysis, intent comprehension, aesthetic judgment, and discerning appropriate actions.”

Financial Performance and Future Plans

Currently, Mercor distributes over $1.5 million daily to its network of contractors. The company boasts a roster of more than 30,000 experts, who earn an average of over $85 per hour.

Mercor’s strategic priorities include expanding its talent network, refining its contractor-client matching systems, and developing new products to automate key operational processes. The long-term goal is to establish an AI-driven recruiting marketplace.