Mercor, a platform specializing in connecting artificial intelligence (AI) laboratories with domain experts for training foundational AI models, has concluded a Series C funding round, raising $350 million. The company confirmed the investment to TechCrunch, which places its post-money valuation at $10 billion.
Felicis Ventures, which previously led Mercor's $100 million Series B round at a $2 billion valuation, also led the current Series C. Existing investors Benchmark and General Catalyst participated in this latest round, alongside new investor Robinhood Ventures.
The current valuation follows earlier market discussions; TechCrunch reported in September that Mercor was in talks with investors to secure a Series C round at a $10 billion valuation, an increase from an initial target of $8 billion. At the time, Mercor indicated to potential investors that it had received multiple investment offers.
Mercor initially launched as an AI-driven hiring platform before pivoting its business model to provide specialized domain experts—including scientists, doctors, and lawyers—for AI model training. The company charges an hourly finder’s fee and a matching rate for these services. In addition to its expert network, Mercor has been developing software infrastructure to support reinforcement learning, a method used to improve AI models through verified or disputed decisions and feedback integration. The company has also stated its intention to eventually establish an AI-powered recruiting marketplace.
Mercor's growth trajectory reportedly accelerated after leading AI laboratories, including OpenAI and Google DeepMind, reportedly ceased engagements with data-labeling firm Scale AI. This occurred following a $14 billion investment in Scale AI by Meta and the subsequent hiring of Scale AI's CEO by Meta, according to reports.
The company reportedly informed investors that it is on track to achieve $500 million in Annual Recurring Revenue (ARR) at a faster rate than Anysphere, the startup behind Cursor. Mercor currently reports paying over $1.5 million per day to its network of more than 30,000 experts, who receive an average compensation exceeding $85 per hour.
Moving forward, Mercor plans to allocate the newly raised capital towards three primary strategic areas: expanding its existing talent network, refining its systems for matching contractors with client needs, and developing new products designed to automate a greater portion of its operational processes. "Since we founded Mercor almost three years ago, AI has advanced at an astonishing pace. But it still struggles with the subtleties that drive economically valuable work—balancing trade-offs, understanding intent, developing taste, and deciding what should be done, not just what can be done," the company stated in a blog post provided to TechCrunch.
