Mercor, a start that connects companies such as Openai and Meta with field experts needed to train and improve fundamental AI models, are in discussions with investors for a C series C, according to a marketing document seen by TechCrunch and two sources.
Felicis, a return investor, is thinking of doubleing the company for the C series, according to two sources. Felicis refused to comment.
The company is currently targeting $ 10 billion or more, one person said. This comes from a target of target of $ 8 billion that the company discussed a few months ago, one person said. However, the terms of the final agreement could still change.
The company has told potential investors that it already has multiple offers. VCs have arrived in Mercor preventively with company valuation offers 10 billion $the information previously mentioned.
TechCrunch also understands that the company has brought at least two new investors to raise funds for the possible agreement through SPVs.
The previous round of the company was announced in February – a series of $ 100 million B in valuation of $ 2 billion led by Felicis.
Founded in 2022, Mercor is approaching $ 450 million in annual execution revenue, one person said. The company told TechCrunch in February that its annual revenue (calculated by proliferation of the last month by 12) had reached $ 75 million at that time. In March, Mercor CEO Brendan Foody posted on X that ARR was $ 100 million.
TechCrunch event
Francisco
|
27-29 October 2025
The company has told investors that it is on the right track to hit the ARR $ 500 million faster than Anysphere, The start that makes AI coding assistant runner, according to a source familiar with the situation. Anysphere hit $ 500 million in ARR about a year after starting its product. Unlike Anysphere, which is still burning cash, Mercor has created $ 6 million in the first half of the year, Forbes reported.
Mercor earns revenue by providing companies specialized sector experts to perform AI models – such as scientists, doctors and lawyers – and charge a hourly detector and the matching rate for their work.
The company claims to provide data labeling contractors in five top AI Labs, including Amazon, Google, Meta, Microsoft and Openai, as well as Tesla and Nvidia. According to sources, a huge part of its revenue comes from a subset of these brands, including Openai.
To further differentiate its business model, Mercor tells investors that it adds more software infrastructure to learn reinforcement – a training method where the decisions of a model or agent are verified or disputed, allowing it to integrate feedback and improve with time. The company also intends to build a recruitment market that operates with the c.
Mercor also faces competition from companies such as Surge AI, which refers to talks to gather funding in a Valuation of $ 25 billionAs well as Turing Labs and other data labeling companies, such as Scale AI, which also extend to RL services. Some believe that Openai, which recently launched the lease platform, could lead the AI giant to create its own RL-based RL service.
When reached for comments, Foody told TechCrunch: “We were not trying to increase at all” and, “we reject bids every month.” He also said that the company’s ARR is higher than $ 450 million. However, he clarified that the company’s revenue includes the total amount that customers pay Mercor for services before its contractors receive their department. He added that this is a common accounting practice recommended by control companies and used by Surge AI competitors and the AI scale.
The start was founded in 2023 by Thiel Fellows and Harvard Dropouts Brendan Foody (CEO), Adarsh Hiremath (CTO) and Surya Midha (COO). All three co -founders are still in the early 1920s. To transfer the company to the next level, Mercor recently appointed Sundeep Jain, a former product leader in Uber with decades of experience, according to Forbes’ first president.
Mercor was recently accused by the AI competitors scale of embezzling commercial secrets. Scale AI claims that one of its former employees who later joined the Mercor “stole more than 100 confidential documents on client strategies and other privately owned information”, according to a copy of TechCrunch that had previously been reviewed.
Maxwell Zeff contributed reports
