Mercor is in talks for a $20B valuation

Mercor, an AI training startup, is reportedly negotiating to secure funding that could elevate its valuation to an impressive $20 billion, according to sources cited by Bloomberg. This marks a significant leap from its previous valuation of $10 billion following a $350 million Series C funding round in October. While discussions for this new funding round are still in the early stages, reports indicate that Mercor has informed investors it has already received a term sheet reflecting this increased valuation. In a recent update, founder and CEO Brendon Foody shared on X that the company's annualized revenue run rate has surged to over $2 billion—a remarkable 100% growth in just four months. Additionally, Mercor announced its acquisition of Deeptune, a firm specializing in training AI agents. This acquisition will see the entire Deeptune team integrate into Mercor, enhancing its capabilities in the AI sector. These developments, including the growth in revenue and strategic acquisition, suggest that Mercor is moving past the challenges it faced earlier this year, which included a data breach and legal issues involving some contract workers, as reported by Business Insider.