Mercor, the platform connecting AI labs with specialized human experts for model training, has quintupled its valuation to $10 billion with a fresh $350 million Series C round.
Felicis Ventures led the round, having also spearheaded Mercor's previous $100 million Series B at a $2 billion valuation. Existing backers Benchmark and General Catalyst participated alongside new investor Robinhood Ventures. The company's rapid ascent saw its valuation target climb from $8 billion to $10 billion in a matter of months, reportedly attracting multiple offers.
Mercor's success comes amidst a shifting landscape for AI training. The company's fortunes reportedly rose after major players like OpenAI and Google DeepMind cut ties with data-labeling giant Scale AI following Meta's substantial investment and hiring of its CEO. This created an opening for Mercor's model, which pivoted from general AI hiring to providing specialized domain experts, scientists, doctors, lawyers, to perform critical reinforcement learning tasks, charging a matching rate and hourly fee.
"AI still struggles with the subtleties that drive economically valuable work," Mercor stated in a blog post, emphasizing the need for human judgment in balancing trade-offs and understanding intent. The startup now pays over $1.5 million daily to its 30,000 contractors, who average $85 per hour. Mercor plans to expand this expert network, refine its matching algorithms, and build more automation tools, aiming to eventually become an AI-powered recruiting marketplace.
