The AI sector witnesses another seismic shift as startup Mercor secures a monumental $350 million in fresh funding, catapulting its valuation to a staggering $10 billion. This substantial capital infusion, confirmed directly by the company, underscores the intense market demand for sophisticated AI training solutions and positions Mercor as a formidable new force in the industry. The round signifies a massive vote of confidence in Mercor’s unique business model, which has evolved significantly from its origins.

Initially launched as an automated recruitment platform, Mercor was founded by a trio of Thiel Fellows who developed technology to analyze candidate data like transcripts and resumes. The pivotal turning point came when the company discovered its true calling, realizing it had inadvertently built a vast, global network of highly specialized domain experts through its recruiting work.

This discovery prompted a strategic pivot, transforming Mercor from a hiring tool into a critical bridge connecting elite AI research labs with the human expertise necessary to train next-generation foundational models.

Leading this latest financing is Felicis Ventures, reaffirming its commitment after previously spearheading Mercor’s $100 million Series B at a $2 billion valuation. The rapid quintupling of the company’s worth highlights its explosive growth trajectory.

They are joined by returning backers Benchmark and General Catalyst, with Robinhood Ventures also participating as a new investor. This powerful consortium is betting that Mercor’s curated expert network holds the key to solving one of AI’s most pressing challenges: achieving higher-order reasoning and nuanced understanding in complex, specialized fields, thereby accelerating the development of more capable and reliable artificial intelligence.