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Marina Temkin PM PDT · September 9, 2025 Mercor, a startup that connects companies like OpenAI and Meta with domain experts needed to train and refine their foundational AI models, is in discussions with investors for a Series C round, according to a marketing document viewed

Felicis, a returning investor, is considering doubling down on the company for the Series C, according to two

The company is currently targeting a valuation of $10 billion or more, one person said. That’s up from an $8 billion target valuation that the company discussed a couple of months ago, one person said. However, terms of the final deal could still change.

The company has told potential investors that it already has multiple offers. VCs have been reaching out to Mercor preemptively with offers valuing the company at as much as $10 billion, the Information previously reported.

TechCrunch also understands that the company has brought on at least two new investors to raise funds for the potential deal through special purpose vehicles (SPVs).

The company’s previous round was announced in February – a $100 million Series B at a $2 billion valuation led

Founded in 2022, Mercor is approaching $450 million in annualized run-rate revenue, one person said. The company told TechCrunch in February that its annual revenue (calculated

Techcrunch event Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025 Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668. Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025 Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668. San Francisco | October 27-29, 2025 REGISTER NOW The company has told investors it is on track to hit the $500 million ARR milestone faster than Anysphere, the startup that makes AI coding assistant Cursor, according to one

Mercor earns revenue

The company claims to supply data labeling contractors to five top AI labs, including Amazon, Google, Meta, Microsoft, and OpenAI, as well as to Tesla and Nvidia. According to

To further diversify its business model, Mercor has been telling investors that it is adding more software infrastructure for reinforcement learning –  a training method where a model or agent’s decisions are verified or disputed, enabling it to incorporate feedback and improve over time. The company also intends to eventually build an AI-powered recruiting marketplace.

Still, Mercor faces competition from companies like Surge AI, which is reportedly in talks to raise funding at a $25 billion valuation, as well as from Turing Labs and other data labeling firms like Scale AI that are also expanding into RL services. Some believe that OpenAI’s recently launched hiring platform could lead the AI giant to create its own human-expert-powered RL training service.

When reached for comment, Foody told TechCrunch, “We haven’t been trying to raise at all,” and, “We turn down offers every month.” He also said 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 portion. He added this is a common accounting practice recommended

The startup was co-founded in 2023

Mercor was recently sued

Maxwell Zeff contributed reporting

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Marina Temkin

Marina Temkin is a venture capital and startups

You can contact or verify outreach from Marina

October 27-29, 2025 San Francisco Founders: land your investor and sharpen your pitch. Investors: discover your next breakout startup. Innovators: claim a front-row seat to the future. Join 10,000+ tech leaders at the epicenter of innovation. Register now and save up to $668.Regular Bird rates end September 26

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