Mercor, the AI data labeling firm founded by the world’s youngest self-made billionaires, is in talks to raise $500 million at a valuation of $20 billion, according to a source familiar with the fundraising.
The new round would double the startup’s worth in less than a year; Mercor raised $350 million at a $10 billion valuation in September from backers including Felicis Ventures, Benchmark and General Catalyst. It’s unclear what investors would participate in the new round.
The deal is expected to close later this month, said the person, who cautioned the terms of the deal could change. But if the round closes, its three founders — co-CEOs Brendan Foody and Adarsh Hiremath, and board chairman Surya Midha — would be worth $4.3 billion apiece, according to Forbes estimates.
A Mercor spokesperson declined to comment on the founders’ net worths. Bloomberg earlier reported Mercor was in fundraising talks at a $20 billion valuation.
Mercor’s platform helps advanced AI labs like OpenAI improve their cutting edge models, by recruiting PhDs, lawyers, bankers, scientists and programmers to create specialized training data.
The funding comes as Mercor has weathered recent controversies. In April, the company said it suffered a severe security breach, explaining that it was among the thousands of companies targeted in a massive hack linked to open source project LiteLLM. The startup has also faced other incidents as it has grown: It fired an employee for embezzling funds, and employees suspected North Korean operatives infiltrated its platform using stolen credentials, Forbes reported in April.
Despite the troubles, Mercor’s revenue has ballooned. The company says it crossed $2 billion in annualized revenue in June, doubling its sales four four months after hitting $1 billion in February. Founded in 2023, Mercor has become a poster child for booming Silicon Valley AI startups run by unusually young, unusually wealthy founders. The three cofounders, who met on their Bay Area high school debate team, were 22 years old when they became the world’s youngest self-made billionaires in October.
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