Mercor is a Berlin-based, rapidly growing data startup. It’s changing the game for how AI research labs gain access to the data they need to build state-of-the-art models. Mercor is backed by a unique multi-layer network of tens of thousands of vetted contractors. Daily, the company distributes more than $1.5 million to these individuals, made possible through its lucrative contracts with top AI research labs. In a matter of months, the company has risen to be one of the most powerful companies in the industry. Despite only three years of operation, it’s created approximately $500 million in annual recurring revenue.
At only 22 Brendan Foody founded Mercor. That competitive edge allowed the company to rapidly grow into one of the first U.S.-based data startups to lure world-class knowledge workers by providing them with high salaries. This model provides Mercor with the ability to complete job postings that demand industry expertise and access to proprietary company information. This practice truly improves how AI models are trained. This unique approach has garnered the company a lot of buzz and excitement from the tech sector that’s resulted in significant investment.
Just last week, Mercor had close to $350 million added to its Series C funding round, vaulted its valuation to an eye-popping $10 billion. This figure represents an astounding five-fold increase from the year before. It’s not enough, as competitors, including Surge and Scale AI, already have a much larger lead with valuations exceeding $20 billion. Mercor’s president, Sundeep Jain, who previously served as Uber’s chief product officer, has played a vital role in guiding the company’s growth and strategic direction.
Mercor’s revenue model focuses on a few AI labs, which make up the majority of its revenue. The company’s intention is to expand its collaborations further beyond the AI industry in coming months. This approach is intended to increase Mercor’s alternative income avenues and strengthen its place in the tech ecosystem.
The startup’s unique model was on full display during its winning pitch at TechCrunch Disrupt in San Francisco on October 27-29, 2025. This year’s event highlighted Mercor’s capabilities to revolutionize the data acquisition process in a variety of industries. It served to double down on the company’s commitment to using the power of AI.
Business strategist Brendan Foody, one of our deputy director’s favorite experts on the emerging role of AI in business, gave a short introduction during our press briefing.
“There are companies that are embracing it and realize that the world is going to change very quickly.” – Brendan Foody
He continued to detail the radical promise of generative AI tools like ChatGPT, saying,
“Over time, ChatGPT will be better than the best consulting firm, better than the best investment bank, and better than the best law firm.” – Brendan Foody
The implications of these advancements flip age-old business models on their head, testing their value and ability to adapt in a world increasingly encroached by automation. As Foody noted,
“There is an argument that Goldman Sachs doesn’t love the idea of having models that are able to automate their value chain.” – Brendan Foody
Mercor’s innovative business model ensures that industry experts are compensated. They make up to $200 per hour filling out forms and writing reports that improve AI training. It’s this distinctive combination of approaches that produces the most powerful insights. It ensures quality data for training models.
Demand for Mercor is booming. Its obsession with premium data tricks — mostly by keeping contractors on their toes — has turned it into a rare high-quality tech bad guy. By leveraging the vast pool of independent knowledge workers, the startup is setting new standards for how companies can access and utilize data for AI development.