Sources: AI training startup Mercor eyes $10B+ valuation on $450 million run rate

Summary

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 by TechCrunch and two sources familiar with the deal talks. Felicis, a returning investor, is considering doubling down on the company for the Series C, according to two sources. Felicis declined to comment. 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 by Felicis. 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 by multiplying the latest month by 12) had reached $75 million at that time. In March, Mercor CEO Brendan Foody posted on X that ARR was $100 million. Techcrunch event San Francisco | October 27-29, 2025 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 source familiar with the situation. Anysphere famously hit $500 million in ARR about a year after its product launched. Unlike Anysphere, which is still burning cash, Mercor generated $6 million in profit in the first half of the ye...