Harvard Dropouts Behind Mercor Target $10 Billion Valuation As Startup Supplying OpenAI, Tesla And Nvidia Hits $450 Million Run Rate

Core Insights - Mercor, a startup connecting domain experts to major tech companies, is in talks for a Series C funding round that could value it at over $10 billion, following a $100 million Series B at a $2 billion valuation [1][2] - The company has reported a significant increase in annualized run-rate revenue, reaching $450 million, up from $75 million earlier this year, and expects to surpass $500 million in annual recurring revenue [3][4] - Mercor has achieved profitability, generating $6 million in profit in the first half of the year, and earns revenue by providing contractors for AI model training [4][5] Funding and Valuation - Felicis is considering increasing its investment in Mercor, while other venture capital firms have made preemptive offers valuing the startup around $10 billion [2] - The company has added at least two new investors through special purpose vehicles [2] Revenue and Profitability - Mercor's annual recurring revenue reached $100 million in March, with expectations to grow rapidly compared to competitors [3][4] - The company generates revenue by supplying domain experts to AI labs and charges an hourly matching fee for their services [4][6] Market Position - Mercor claims to provide contractors to major tech firms, with a significant portion of revenue coming from OpenAI [5] - The company is positioned in a $1.8 trillion market, attracting interest from investors who previously backed successful companies like Uber and Venmo [7]