Mercor AI Startup Raises $350M, Hits $10B Valuation in Two Years

Mercor, a San Francisco-based AI startup founded in 2023 by Brendan Foody, Adarsh Hiremath, and Surya Midha, recently raised $350 million in a Series C funding round led by Felicis Ventures, with participation from Benchmark, General Catalyst, and Robinhood Ventures, bringing its valuation to $10 billion—a fivefold increase since February. Originally launched as an AI-driven hiring platform, Mercor pivoted to connecting top AI labs like OpenAI and Meta with over 30,000 domain experts such as scientists, doctors, and attorneys who assist in training foundational AI models through specialized, nuanced feedback and reinforcement learning techniques. The company pays these contractors an average of $85 per hour and distributes over $1.5 million daily to its talent pool. Mercor's growth was further accelerated by industry shifts, particularly after Meta's $14.3 billion investment in Scale AI, which led some major AI labs to seek a neutral data-labeling partner, creating an opportunity Mercor capitalized on. The startup is on track to approach $500 million in annual recurring revenue and plans to use the new funds to expand its expert network, improve AI matching systems, and enhance delivery speed. Despite competition from companies like Surge AI, Mercor’s rapid valuation increase and investor confidence underscore its key role in the evolving AI infrastructure ecosystem.