San Francisco-based Mercor, a startup that supplies data and expert contractors to help companies build AI models, is in early talks to raise funding at about a US$20 billion valuation, according to people familiar with the matter.

The company told investors it received at least one term sheet at that valuation, though terms could still change or a deal may not happen.

The fundraising discussions come less than a year after Mercor last raised money at a US$10 billion valuation.

The talks follow a late-March security breach that put Mercor’s customers and contractors at risk.

Mercor said the impact on customer and contractor data was “very limited,” citing findings from its investigation.

Meta, which was a customer at the time, paused work with Mercor indefinitely.

A person familiar with the matter said OpenAI and Anthropic remain customers.

CEO Brendan Foody said in an X post this week that Mercor reached a US$2 billion annualized revenue run rate, up from US$1 billion four months earlier.

But that figure does not reflect Mercor’s share after paying contractors, who receive 60% to 70% of billed revenue, according to a person familiar with the matter.

🔗 Source: Bloomberg

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