Core Insights - Mercor, an AI recruitment startup, has raised $250 million in new funding, achieving a valuation of $10 billion, which is five times its previous valuation of $2 billion earlier this year [1][3] - Founded in 2023 by three college dropouts, Mercor has developed a large professional talent network and has seen its annual recurring revenue grow from $1 to $500 million in just 17 months [1][3] Company Overview - Mercor specializes in AI-driven recruitment, utilizing AI to screen resumes and match candidates to job positions quickly [3][5] - The company has expanded its services to include data annotation and large model evaluation, leveraging its extensive network of 30,000 experts [3][9] - The startup's revenue has quadrupled since the turmoil at Scale AI, a competitor, leading to an influx of Scale's former employees and clients [13][14] Business Model and Revenue - Mercor's annual recurring revenue reached $70 million by February, driven by its new business in large model evaluation [3][9] - The company manages a network of experts who can earn significant daily wages, with total earnings exceeding $1.5 million daily [9][10] - The new funding will be allocated to expanding the talent network, enhancing the matching system, and improving delivery speed [3][4] Competitive Landscape - Mercor's main competitor, Scale AI, faced challenges after being acquired by Meta, which led to concerns about data neutrality and client trust [13][14] - The controversy surrounding Scale AI has inadvertently benefited Mercor, resulting in a significant increase in its revenue and client base [14][15] Future Prospects - Mercor's AI-driven recruitment model has positioned it as a key player in the large model evaluation space, filling a critical gap in the industry [15][16] - The company aims to continue leveraging its talent network to support the growing demand for high-quality data and expert feedback in AI model development [16]