Mercor AI Nears $500 Million Revenue Run Rate, Eyes $10 Billion Valuation Amid Hypergrowth

Mercor AI, a rapidly expanding platform connecting domain experts with artificial intelligence companies for model training, is reportedly approaching a $500 million annualized revenue run rate and seeking a valuation exceeding $10 billion. The company's CEO, Brendan Foody, recently highlighted Mercor's unprecedented growth, stating, "Mercor (@mercor_ai) scaled from $1-500M in revenue run rate in the last 17 months, making us the fastest growing company of all time." This announcement underscores the intense demand for specialized human expertise in the evolving AI landscape.

The company's growth trajectory has been remarkable, with an average of 11% week-over-week growth in July, 18% in August, and 19% in September, according to Foody. Mercor's business model involves providing companies like OpenAI, Microsoft, and Google with scientists, doctors, lawyers, and engineers to label data, validate model output, and scaffold reinforcement learning, charging an hourly fee for these services. This model has proven highly lucrative, with Mercor reporting $6 million in profit during the first half of 2025.

A significant driver of this expansion is the emerging trend of the "Economy is Becoming an RL Environment Machine," as described by Foody. Reinforcement learning (RL) is becoming increasingly effective, requiring human expertise to define rewards and automate complex tasks. Mercor is actively building software infrastructure to support these RL workflows, aiming to enhance efficiency and margins beyond its core services.

Despite widespread concerns about job displacement due to AI, Mercor asserts it is "creating a new category of knowledge work faster than any other time in history." The company is currently paying out over $1 million per day to individuals in its marketplace, rapidly hiring experts across various domains to meet the demands of advanced AI development. This approach positions Mercor as a critical enabler in the transition towards an economy where humans train AI agents.

Mercor's rapid ascent has attracted considerable investor interest, with discussions for a Series C round that could push its valuation past $10 billion, a significant jump from its $2 billion valuation in February 2025. While some industry analysts caution about potentially inflated valuations in the overheated AI market, Mercor's consistent profitability and strategic focus on high-value AI training services suggest a robust market position. The company's expansion into software for reinforcement learning further diversifies its offerings and strengthens its long-term growth prospects.