Mercor ARR Hits $450M

Mercor, a cutting-edge AI training startup founded by young Thiel Fellows, has surged to an annualized revenue run rate (ARR) approaching $450 million as of September 2025.

The company has demonstrated remarkable growth—from a Series B valuation of $2 billion earlier this year to currently targeting a $10 billion+ valuation in its upcoming Series C round. Unlike many hypergrowth companies, Mercor reported a $6 million profit in H1 2025, underscoring its operational strength and capital efficiency.

At its core, Mercor connects large AI labs—including OpenAI, Meta, Amazon, Microsoft, Google, Tesla, and NVIDIA—with specialized professionals (scientists, doctors, lawyers, etc.) to train and refine foundational AI models.

The company charges both hourly finders’ fees and a matching fee, serving as a vital bridge in the AI development ecosystem. Building on this model, Mercor is expanding into software infrastructure for reinforcement learning and aims to develop an AI-powered recruiting marketplace—further diversifying its revenue streams and strategic positioning.

Founded in 2022 and launching in early 2025, Mercor has rapidly scaled through funding milestones—from a $100M Series B at a $2B valuation to its current Series C with a $10B+ valuation target.

The company’s financial discipline is evident: despite rapid growth, it maintains profitability and remains highly selective—reportedly turning down investment offers regularly. However, Mercor also faces legal challenges—Scale AI has filed a lawsuit alleging misappropriation of trade secrets by a former executive—which underscores the competitive and high-stakes nature of the AI training market.