Mercor in talks for $20B valuation, sources say

Mercor, an AI training startup, is reportedly in talks to raise a new funding round at a $20 billion valuation, according to people familiar with the matter cited by Bloomberg. That would be a sharp jump from the $10 billion valuation the company reached in October, when it raised a $350 million Series C — a late-stage venture round typically reserved for startups with proven revenue.

The talks are still at an early stage, Bloomberg reported. The outlet also said Mercor told investors it had already received a term sheet — a preliminary document outlining proposed investment terms — at the new valuation. The report follows comments from founder-CEO Brendan Foody, who wrote on X that Mercor’s annualized revenue run rate, a projection of yearly revenue based on its current pace, has crossed $2 billion. That marks a 100% increase from just four months earlier.

Mercor also announced on Thursday that it is buying Deeptune, a company that helps train AI agents. Per Mercor’s press release, the entire Deeptune team will join Mercor as part of the acquisition.

Together, the revenue figures, the acquisition, and the reported funding talks suggest Mercor may have put a rough start to 2026 behind it. Earlier this year, the company suffered a data breach, and several of its contract workers filed lawsuits, Business Insider reported.

Why it matters

If the $20 billion valuation talks close, Mercor’s price tag would double in under a year, signaling strong investor appetite for AI-training infrastructure even as the company works through the data breach and contractor lawsuits that marked its early 2026.