AI training startup Mercor is reportedly in discussions to raise a new funding round at a $20 billion valuation, according to a Bloomberg report citing people familiar with the matter. If completed, the deal would double the company’s valuation from October, when it raised a $350 million Series C funding round at a $10 billion valuation.
According to the report, negotiations are still in the early stages. However, Bloomberg said Mercor has informed potential investors that it has already received a term sheet reflecting the proposed $20 billion valuation.
The fundraising discussions come as founder and CEO Brendan Foody announced on X that Mercor’s annualised revenue run rate has surpassed $2 billion. The company reached the milestone just four months after reporting a $1 billion annualised revenue run rate, representing 100% growth over that period.
Mercor also announced on Thursday that it has acquired Deeptune, a startup focused on training AI agents. As part of the acquisition, the entire Deeptune team will join Mercor, according to the company’s announcement.
The combination of rapidly growing revenue, the Deeptune acquisition, and the possibility of another major funding round suggests Mercor has regained momentum after facing several challenges earlier in 2026. During that period, the company experienced a data breach, while several contract workers also filed lawsuits against the startup, according to a previous Business Insider report.
With strong revenue growth and continued expansion, Mercor appears to be strengthening its position in the rapidly evolving AI training and infrastructure market as investor interest in artificial intelligence startups remains high.
