Mercor Quintuples Valuation to $10B with $350M Series C
Mercor has officially quintuples its valuation to $10 billion after raising $350 million in Series C funding, marking one of the biggest jumps in AI startup valuations this year. The round highlights Mercor’s growing dominance in connecting AI labs with domain experts who train next-generation foundational AI models.
Image Credits:Mercor
Felicis Ventures Leads Mercor’s Massive Series C
The latest round was led by Felicis Ventures, which also spearheaded Mercor’s previous $100 million Series B at a $2 billion valuation. Existing backers Benchmark and General Catalyst, along with newcomer Robinhood Ventures, also joined the round.
This Series C confirms earlier TechCrunch reports that Mercor was in advanced talks to raise funds at a $10 billion valuation — significantly higher than its earlier $8 billion target just months ago.
From Hiring Platform to AI Expert Marketplace
Mercor began as an AI-driven hiring platform, but quickly pivoted to a model that connects companies with specialized domain experts — scientists, doctors, and lawyers — who help train AI models for real-world applications. The startup charges an hourly finder’s fee and matching rate for these expert services.
Its model has become increasingly valuable as companies seek human-guided training to improve AI systems’ reasoning, decision-making, and domain accuracy.
Reinforcement Learning and Infrastructure Growth
Beyond matchmaking, Mercor has expanded its reinforcement learning infrastructure, enabling AI agents to learn through human feedback loops. This helps models better understand context, intent, and nuance — key factors for high-value enterprise AI systems.
The company has hinted at long-term plans to evolve into a fully AI-powered recruiting marketplace, merging automation with expert human oversight.
Why Mercor’s Growth Matters
Mercor’s surge came amid a major shift in the AI talent ecosystem. Industry giants like OpenAI and Google DeepMind reportedly cut ties with Scale AI after Meta’s $14 billion investment in the data-labeling firm. That opened the door for Mercor to attract top labs seeking reliable, transparent partnerships.
Investors were reportedly impressed by Mercor’s growth trajectory, noting that it’s on track to hit $500 million in annual recurring revenue (ARR) faster than Anysphere, the company behind Cursor.
Building the Future of AI Work
In a statement, Mercor’s founders reflected on AI’s evolution:
“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 currently pays over $1.5 million per day to more than 30,000 experts, with average hourly rates exceeding $85.
What’s Next for Mercor
Following the Mercor quintuples valuation to $10B with $350M Series C milestone, the startup plans to focus on three key priorities:
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Expanding its global talent network
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Enhancing AI-human matching systems
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Developing automation tools to streamline expert-client collaboration
With its valuation soaring and investor confidence high, Mercor is positioning itself as a cornerstone in the new era of AI-driven human expertise — bridging the gap between advanced models and real-world intelligence.
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