#What Happened
Artificial intelligence startup Mercor has reportedly raised around $350 million in a new funding round that values the company at roughly $10 billion, according to The Wall Street Journal. While not officially confirmed by the company, this round is widely viewed as a follow-on to its $100 million Series B raised in February 2025 at a $2 billion valuation — marking a roughly fivefold increase in value within eight months.
The latest round was led by Felicis, which also headed Mercor’s previous Series B. Other investors reportedly include Benchmark and General Catalyst, among others.
Mercor plans to use the new capital to expand its global talent network, improve its AI-driven matching systems, and scale delivery of human-in-the-loop AI training services. Initially founded as a hiring platform, Mercor has evolved from screening candidates via resumes and interviews to operating a vast network of human experts who train and fine-tune AI models.
As of October 2025, the company reports employing more than 30,000 human contractors and spending over $1.5 million per day to support AI training operations, according to Business Insider.
#Why It Matters
This substantial funding round highlights growing investor confidence in Mercor’s shift from recruitment technology to AI-training infrastructure. By positioning its expert network as a human layer in AI model development, Mercor is capitalizing on the rising demand for accurate, ethically sourced training data — a segment increasingly seen as critical to the next wave of artificial intelligence systems.
The valuation surge also reflects broader market enthusiasm for companies building human-in-the-loop AI systems, where skilled contractors help refine and validate machine learning models.
#What to Watch Next
Product and service expansion: New tools or platforms that further integrate human expertise into AI workflows.
Legal and competitive risk: Axios reports that Mercor is currently facing a lawsuit from Scale AI alleging trade-secret theft — an issue that could influence its trajectory.
Partnerships and funding: Potential alliances with major AI labs or additional financing that may precede an eventual IPO.
Performance milestones: Updates on profitability and contractor network growth as the company scales its AI-training services.
#Quick Take
Mercor’s reported $350 million raise at a $10 billion valuation positions the startup as a central player in the rapidly growing AI-training ecosystem. The investment underscores how the market is rewarding firms that blend automation with human expertise.
#Broader Market Angle
Mercor’s evolution mirrors trends across the technology sector, as companies such as Palantir Technologies, UiPath, and Scale AI increasingly emphasize AI-driven and data-centric workflows. The rise of human-in-the-loop training networks points to a hybrid future where human judgment remains essential to the development and deployment of advanced AI systems.