AI Firm Mercor In Talks for $20 Billion Valuation
Technology company Mercor is reportedly in discussions for a funding round that could value the startup at $20 billion.
AI training startup Mercor is reportedly in talks to raise a funding round at a $20 billion valuation, sources familiar with the matter told Bloomberg. This prospective valuation signifies a significant increase from its last funding round in October 2025, where it secured $350 million in a Series C at a $10 billion valuation.
The discussions for this latest round are described as being in the early stages. However, Mercor has reportedly presented investors with a term sheet reflecting the new $20 billion valuation. The news emerges as CEO Brendan Foody announced on X that the company's annualized revenue run rate has surpassed $2 billion, a 100% increase in just four months.
Mercor also announced on Thursday its acquisition of Deeptune, a company specializing in AI agent training. The entire Deeptune team is expected to join Mercor as part of the transaction. These strong revenue figures and the acquisition suggest a potential turnaround after early 2026 challenges.
Earlier this year, Mercor experienced a data breach, and several contract workers filed lawsuits, as reported by Business Insider. While the substantial valuation talks and acquisition are positive indicators, the company will need to demonstrate its ability to manage this growth and overcome past operational hurdles.