AI Startup Mercor Hits $10 Billion Valuation After $350M Funding Round, Pivots to Training AI Models
Summary
AI startup Mercor rockets to $10 billion valuation after raising $350 million, pivoting from hiring assessments to training AI models with 30,000 contractors earning $1.5 million daily while benefiting from clients fleeing competitor Scale AI following Meta's controversial acquisition.
Key Points
- AI hiring startup Mercor raises $350 million in Series C funding led by Felicis, bringing its valuation to $10 billion - a fivefold increase since February
- The company pivots from hiring assessment to training AI models using over 30,000 contractors who collectively earn $1.5 million daily teaching AI agents human-like thinking
- Mercor benefits from Meta's $14.3 billion acquisition of 49% stake in competitor Scale AI, which reportedly caused major clients like Google and OpenAI to cut ties with Scale