Mercor is in talks for a $20B valuation
Quick Answer
AI startup Mercor is negotiating a funding round that could value the company at $20 billion, up from $10 billion in October.
Quick Take
The company reported a 100% increase in annualized revenue run rate to $2 billion and is acquiring Deeptune, enhancing its AI training capabilities.
Key Points
- Mercor's valuation could reach $20 billion, doubling from its previous $10 billion.
- The company reported an annualized revenue run rate of $2 billion, a 100% increase.
- Mercor is acquiring Deeptune, which specializes in training AI agents.
- The funding discussions are in early stages, with a term sheet already received.
- Earlier issues included a data breach and lawsuits from contract workers.
📖 Reader Mode
~1 min readAI training startup Mercor is reportedly in talks to raise a round at a $20 billion valuation, sources tell Bloomberg. That would be quite a jump from it’s last value in October, when it raised a $350 million Series C at a $10 billion valuation.
The conversations for this latest round are at early stages, the outlet noted, yet it reported that Mercor told investors it already received a term sheet at the new valuation. This report also comes as founder-CEO Brendon Foody took to X to say the company’s annualized revenue run rate crossed $2 billion, a $100% increase from just four months ago.
Mercor also announced on Thursday that it was buying Deeptune, a company that helps train AI agents. The entire Deeptune team will be joining Mercor as part of the acquisition, per its press release. The revenue numbers, acquisition and potential new funding signal that Mercor may have put its bumpy early 2026 troubles behind it. Earlier this year the company suffered a data breach and several of its contract workers filed lawsuits, Business Insider reported.
Topics
— Originally published at techcrunch.com
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