Mercor secures $350 million in Series C funding, valued at $10 billion

Mercor plans to use the new funding to expand its talent network, enhance expert-matching systems, and accelerate delivery, evolving from a recruitment platform founded by Thiel Fellows into a human expertise-driven AI training company

Artificial intelligence startup Mercor has announced a major funding milestone, raising $350 million in its latest Series C round led by Felicis Ventures, with participation from Benchmark, General Catalyst, and Robinhood Ventures. The new round values the company at $10 billion, marking a fivefold increase since its previous raise in February.

In a company statement, Mercor outlined plans to use the fresh capital to expand its talent network, improve its expert-matching systems, and accelerate project delivery. The startup, founded by three Thiel Fellows, began as a recruitment platform analyzing resumes, interviews, and portfolios to evaluate candidates. However, it has since evolved into a platform focused on training AI models through human expertise.

Mercor now manages a global network of over 30,000 contractors, who collectively earn over $1.5 million daily. These professionals contribute to refining AI systems by providing human insights and contextual understanding that traditional algorithms struggle to replicate.

Market shift and competitive edge

Mercor’s rapid growth coincides with significant shifts in the AI training ecosystem. The company benefited from the restructuring of Scale AI, which faced backlash after Meta acquired a 49% stake for $14.3 billion, prompting some major AI labs, including Google and OpenAI, to end partnerships.

“It’s rare in startups when your biggest competitor gets sidelined overnight,” Mercor cofounder Adarsh Hiremath told Forbes.

Despite its success, Mercor continues to face competition from Surge AI, reportedly seeking a $1 billion raise, and Turing AI, valued at $2.2 billion. Other rivals, such as Invisible Technologies, also continue to attract significant investor interest.

The new funding positions Mercor as one of the most valuable startups in the AI infrastructure and data-labeling space, underscoring investor confidence in human-guided AI training as a critical growth frontier.