Sources: AI Training Startup Mercor Aims for $10B+ Valuation with $450 Million Revenue Run Rate

Mercor Eyes $10 Billion Valuation in Upcoming Series C Funding Round

Mercor, a pioneering startup facilitating connections between companies like OpenAI and Meta with domain professionals for AI model training, is reportedly in talks with investors for a Series C funding round, according to sources familiar with the negotiations and a marketing document obtained by TechCrunch.

Felicis Considers Increasing Investment

Felicis, a previous investor, is contemplating a deeper investment for the Series C round. However, Felicis has chosen not to comment on the matter.

Targeting a $10 Billion Valuation

Mercor is eyeing a valuation exceeding $10 billion, up from an earlier target of $8 billion discussed just months prior. Final deal terms may still fluctuate as negotiations progress.

A Surge of Preemptive Offers

Potential investors have been informed that Mercor has received multiple offer letters, with valuations reaching as high as $10 billion, as previously covered by The Information.

New Investors on Board

Reports indicate that Mercor has successfully onboarded at least two new investors to assist in raising funds for the impending deal via special purpose vehicles (SPVs).

Previous Funding Success

The company’s last funding round occurred in February, securing $100 million in Series B financing at a valuation of $2 billion, led by Felicis.

Impressive Revenue Growth

Founded in 2022, Mercor is nearing an annualized run-rate revenue (ARR) of $450 million. Earlier this year, the company reported revenues soaring to $75 million, later confirmed by CEO Brendan Foody to reach $100 million in March.

Projected Growth Outpacing Competitors

Mercor is on track to surpass the $500 million ARR milestone quicker than Anysphere, which achieved this goal approximately a year post-launch. Notably, Mercor has already generated $6 million in profit during the first half of the year, contrasting with its competitors.

Revenue Model and Clientele

Mercor’s revenue stream is primarily generated by connecting businesses with specialized experts in various domains—such as scientists and lawyers—charging for their training and consultation services. The startup claims to supply data labeling contractors for leading AI innovators including Amazon, Google, Meta, Microsoft, OpenAI, Tesla, and Nvidia, with notable income derived from collaborations with OpenAI.

Diversifying with Software Infrastructure

To expand its operational model, Mercor is exploring the implementation of software infrastructure for reinforcement learning (RL), a training approach that enhances decision-making processes in AI models. The company also aims to develop an AI-driven recruiting marketplace.

Facing Competitive Challenges

Mercor’s journey isn’t without competition; firms like Surge AI are also seeking funding to bolster their valuation significantly. Additionally, OpenAI’s newly launched hiring platform poses potential competitive pressures in the realm of human-expert-powered RL training services.

Co-Founder Insights

In response to inquiries, CEO Brendan Foody stated, “We haven’t been trying to raise at all,” and noted that the company regularly declines funding offers. He confirmed that the ARR is indeed above $450 million, clarifying that reported revenues encompass total customer payments before contractor distributions, a common accounting practice in the industry.

Leadership and Growth Strategy

Mercor was co-founded in 2023 by Thiel Fellows and Harvard dropouts Brendan Foody (CEO), Adarsh Hiremath (CTO), and Surya Midha (COO), all in their early twenties. To help drive the company forward, they recently appointed Sundeep Jain, a former chief product officer at Uber, as the first president.

Legal Challenges from Scale AI

Mercor is currently facing a lawsuit from rival Scale AI, which accuses the startup of misappropriating trade secrets through a former employee who allegedly took over 100 confidential documents related to Scale’s customer strategies and proprietary information.

Maxwell Zeff contributed reporting

Sure! Here are five frequently asked questions (FAQs) based on the topic of Mercor’s valuation and financial performance:

FAQs

1. What is Mercor’s current valuation?

  • Mercor is targeting a valuation of over $10 billion as it continues to grow in the AI training startup sector.

2. What is Mercor’s current revenue run rate?

  • The company has a revenue run rate of approximately $450 million, indicating strong financial performance and growth potential.

3. What does a $10 billion valuation mean for Mercor?

  • A $10 billion valuation suggests that investors believe in Mercor’s potential for significant future growth and its strong position in the AI training market.

4. How does Mercor plan to achieve its ambitious valuation?

  • Mercor is focusing on scaling its AI training solutions, attracting top talent, and potentially expanding its market reach to enhance its product offerings and customer base.

5. What factors contribute to the high valuation in the AI startup sector?

  • High valuations in the AI sector typically result from rapid advancements in technology, increasing demand for AI solutions across various industries, and investor confidence in the profitability of such innovations.

If you have more specific inquiries or need further information, feel free to ask!

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Assort Health Secures $50M to Streamline Patient Phone Call Automation, Sources Reveal

<div>
  <h2>Assort Health Secures $50 Million in Series B Funding, Accelerating AI-Driven Patient Communication</h2>

  <p id="speakable-summary" class="wp-block-paragraph">Assort Health, an innovative startup leveraging AI to streamline patient communication in specialty healthcare practices, has successfully raised approximately $50 million in a Series B funding round, achieving a valuation of $750 million. This significant financing comes merely four months after their <a target="_blank" href="https://www.assorthealth.com/blog/assort-health-secures-26-million-in-funding-to-expand-specialty-specific-generative-ai-platform-for-managing-patient-phone-calls" target="_blank" rel="noreferrer noopener nofollow">$22 million Series A</a>, and was led by Lightspeed Venture Partners, according to reliable sources.</p>

  <h3>Transforming Patient Interactions with AI</h3>
  <p class="wp-block-paragraph">The startup's AI voice agents tackle high-volume administrative tasks such as scheduling, cancellations, and common inquiries, traditionally handled by front desk personnel. This allows human staff to concentrate on more complex and sensitive patient interactions.</p>

  <h3>Rising Demand for AI Solutions in Healthcare</h3>
  <p class="wp-block-paragraph">Assort Health is part of a growing trend among startups that are securing funding to automate patient communications, reducing phone call volumes for medical offices. Recently, EliseAI announced a <a target="_blank" href="https://www.reuters.com/business/healthcare-pharmaceuticals/eliseai-raises-250-million-a16z-led-round-expand-healthcare-2025-08-20/" target="_blank" rel="noreferrer noopener nofollow">$250 million Series E</a>, led by Andreessen Horowitz, achieving a valuation of $2.2 billion. Similarly, Hello Patient raised a <a target="_blank" href="https://www.hellopatient.com/" target="_blank" rel="noreferrer noopener nofollow">$20 million Series A</a> this month at a $100 million valuation, led by Scale Venture Partners.</p>

  <h3>AI at the Forefront of Healthcare Innovation</h3>
  <p class="wp-block-paragraph">The healthcare sector is increasingly adopting AI, exemplified by the rise of medical scribing solutions from companies like Abridge and Ambience Healthcare. Investors are now keen on capitalizing on the potential of AI in enhancing patient communication.</p>

  <h3>Enhancing Patient Retention for Specialty Care</h3>
  <p class="wp-block-paragraph">Assort Health focuses on small and medium-sized specialty care offices that often struggle with long wait times. By providing quick responses through AI agents, these offices can reduce patient loss to competitors.</p>

  <h3>Rapid Growth and Expansion into New Specialties</h3>
  <p class="wp-block-paragraph">While Assort Health's annual recurring revenue (ARR) exceeds $3 million, it is experiencing rapid growth. Originally centered on orthopedic and physical care, the startup has broadened its services to include OB-GYN, dermatology, and dentistry.</p>

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  <h3>Founders with a Vision</h3>
  <p class="wp-block-paragraph">Founded two years ago by Jon Wang, a former medical student turned entrepreneur, and Jeff Liu, a former Facebook engineer, Assort Health represents the convergence of healthcare knowledge and tech innovation.</p>

  <p class="wp-block-paragraph">At this time, neither Lightspeed Venture Partners nor Assort Health has responded to requests for comments.</p>
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Here are five FAQs based on the news that Assort Health has secured $50 million to automate patient phone calls:

FAQs

1. What is the purpose of Assort Health’s $50 million funding?

Assort Health aims to use the $50 million funding to enhance its technology for automating patient phone calls. This initiative is designed to streamline communication between healthcare providers and patients, reducing the administrative burden on staff and improving patient engagement.

2. How will automated phone calls benefit patients?

Automated phone calls can provide patients with timely reminders for appointments, medication refills, and health check-ins. This can help ensure that patients stay informed about their healthcare needs, leading to better health outcomes and improved adherence to treatment plans.

3. What technology does Assort Health utilize for automation?

Assort Health leverages advanced voice recognition and artificial intelligence technologies to facilitate seamless automated conversations. This allows for natural interactions that can effectively address patient inquiries and concerns without human intervention.

4. How might this funding impact healthcare providers?

The automation of patient calls can significantly reduce the workload on healthcare staff, allowing them to focus on more critical tasks such as direct patient care. This can lead to increased efficiency in practice operations and improve overall patient satisfaction.

5. When can we expect to see the results of this funding?

While specific timelines are not disclosed, Assort Health will likely implement the new automated solutions in phases. Patients and healthcare providers can expect to see gradual improvements in communication processes as the technology is developed and integrated into existing systems over the coming months.

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Benchmark Negotiating Series A Investment for Greptile, Valuing AI Code Reviewer at $180M, Sources Indicate

Greptile: The AI-Powered Code Review Startup Eyeing $30M Series A

Greptile, an innovative startup leveraging AI for code reviews, is in the process of securing a $30 million Series A funding round at a valuation of $180 million, led by Benchmark partner Eric Vishria. However, sources indicate that the deal is not yet finalized, and terms may be subject to change.

Founding and Early Success

Founded by Daksh Gupta shortly after graduating from Georgia Tech in 2023, Greptile gained momentum through its participation in Y Combinator’s winter 2024 cohort. Following this, they successfully raised a $4 million seed round led by Initialized Capital.

AI Code Review Technology

Gupta explained to TechCrunch that Greptile’s AI bot functions like an experienced colleague, adept at understanding the intricacies of a customer’s code. This capability enables it to identify bugs and issues that might elude human reviewers.

Operating in a Competitive Landscape

The space for AI code review solutions is highly competitive. Notable rivals include Graphite, which raised $52 million Series B earlier this year led by Accel, and Coderabbit, which secured a $16 million Series A from CRV last year.

Work Culture and Employee Demands

The fierce competition has resulted in Greptile implementing demanding work hours for its staff. Gupta controversially shared on X that Greptile “offers no work-life balance,” with employees typically clocking in from 9 AM to 11 PM, including weekends.

Maximizing Effort in a Cutthroat Environment

After his post gained attention, Gupta remarked to various media outlets that excelling in such a competitive field requires unmatched dedication from every team member. “No one cares about the third-best company,” he stated in an interview with Inc., stressing the importance of total commitment over partial effort.

Looking Ahead: The Impact of Series A Funding

Despite its challenging work culture, attracting a prestigious venture capital firm like Benchmark at a robust valuation could significantly bolster Greptile’s future.

Both Greptile and Benchmark have not responded to requests for comment.

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Here are five FAQs based on the provided benchmark regarding Greptile’s Series A funding and AI-code reviewer valuation:

FAQ 1: What is Greptile, and what does it offer?

Answer: Greptile is an innovative technology company that specializes in AI-driven code review solutions. By leveraging artificial intelligence, Greptile enhances the code development process, ensuring higher quality and efficiency in software projects.

FAQ 2: What is the significance of the $180 million valuation?

Answer: The $180 million valuation underscores Greptile’s potential impact in the software development industry. It reflects investor confidence in the company’s technology, market position, and growth prospects, especially within the rapidly evolving AI sector.

FAQ 3: What are the expected outcomes of the Series A funding?

Answer: The Series A funding is expected to accelerate product development, enhance marketing efforts, and expand Greptile’s team. This growth phase aims to solidify its market presence and improve user adoption of its AI code review tools.

FAQ 4: Why is AI-driven code review important for developers?

Answer: AI-driven code review automates and improves the code review process by detecting bugs and suggesting improvements at a faster pace than traditional methods. This leads to higher code quality, reduced development time, and allows developers to focus on more complex tasks.

FAQ 5: What investors are involved in this Series A funding round?

Answer: While specific investors may not be publicly disclosed, Series A funding usually involves venture capital firms that specialize in technology and AI investments. These investors are attracted to companies with strong growth potential and innovative solutions, like Greptile’s AI code reviewer.

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Sources Indicate LangChain is Set to Become a Unicorn

<div>
    <h2>LangChain Secures New Funding, Valued at $1 Billion</h2>

    <p id="speakable-summary" class="wp-block-paragraph">LangChain, an innovative AI infrastructure startup that offers tools for building and monitoring applications powered by large language models (LLMs), is undergoing a new funding round that aims to elevate its valuation to approximately $1 billion, led by IVP, as reported by insiders.</p>

    <h3>From Open Source to Startup: The Birth of LangChain</h3>
    <p class="wp-block-paragraph">Founded in late 2022 by Harrison Chase, a former engineer at Robust Intelligence, LangChain began as an open-source project. Following a wave of developer interest, Chase transitioned it into a startup, successfully raising a <a target="_blank" rel="nofollow" href="https://blog.langchain.com/announcing-our-10m-seed-round-led-by-benchmark/">$10 million seed round</a> from Benchmark in April 2023. Shortly thereafter, the startup secured a $25 million Series A from Sequoia, bringing its valuation to an impressive <a target="_blank" rel="nofollow" href="https://www.businessinsider.com/sequoia-leads-funding-round-generative-artificial-intelligence-startup-langchain-2023-4">$200 million</a>.</p>

    <h3>Solving Key Challenges in the AI Era</h3>
    <p class="wp-block-paragraph">LangChain quickly became a standout player in the AI landscape. When it launched, LLMs were limited by their inability to access real-time information or perform crucial tasks like web searches, API calls, or database interactions. LangChain's open-source framework effectively addressed these limitations, rapidly attracting attention on GitHub with 111K stars and over 18,000 forks.</p>

    <h3>The Expanding Landscape of LLM Technology</h3>
    <p class="wp-block-paragraph">As the LLM ecosystem continues to grow, companies such as LlamaIndex, Haystack, and AutoGPT have emerged, providing similar functionalities. Furthermore, leading LLM providers like OpenAI, Anthropic, and Google have enhanced their APIs, offering features that were once the hallmark of LangChain's technology.</p>

    <h3>Introducing LangSmith: A Key Innovation</h3>
    <p class="wp-block-paragraph">To maintain its competitive edge, LangChain launched LangSmith—a proprietary product designed for monitoring and evaluating LLM applications. This offering has rapidly gained traction, driving annual recurring revenue (ARR) estimates between $12 million and $16 million, according to sources from TechCrunch. Developers can begin using LangSmith for free, with options to upgrade to a monthly fee of $39 for enhanced collaboration features, as detailed on the <a target="_blank" rel="nofollow" href="https://www.langchain.com/pricing">company's website</a>. Custom plans are available for larger organizations.</p>

    <h3>Trusted by Leading Companies</h3>
    <p class="wp-block-paragraph">Notable companies utilizing LangSmith include Klarna, Rippling, and Replit, highlighting its widespread industry acceptance.</p>

    <h3>Facing Competition in the LLM Operations Space</h3>
    <p class="wp-block-paragraph">While LangSmith stands as a leader in the emerging LLM operations market, it faces competition from smaller, open-source solutions like Langfuse and Helicone. As for IVP, they did not provide commentary on this funding round.</p>
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Here are five FAQs based on the news that LangChain is about to become a unicorn:

FAQ 1: What does it mean for LangChain to become a unicorn?

Answer: A unicorn refers to a privately held startup that achieves a valuation of over $1 billion. If LangChain reaches this status, it signifies significant investor confidence and market potential, marking its position as a leader in its industry.

FAQ 2: What is LangChain’s primary focus?

Answer: LangChain is focused on developing tools and frameworks that facilitate the use of large language models (LLMs) in applications. Its platform supports a range of use cases, including natural language processing, data integration, and automation.

FAQ 3: What factors are contributing to LangChain’s valuation?

Answer: Several factors may be contributing to LangChain’s rise in valuation, including a growing demand for AI-driven solutions, strategic partnerships, exceptional technology offerings, and positive market trends in the AI and machine learning sectors.

FAQ 4: How will becoming a unicorn impact LangChain’s operations?

Answer: Attaining unicorn status could enhance LangChain’s resources for scaling operations, attracting top talent, and investing in research and development. It may also increase visibility and credibility in the marketplace.

FAQ 5: What should we expect from LangChain moving forward?

Answer: Following its anticipated unicorn status, LangChain may pursue aggressive growth strategies, expand its product offerings, and potentially explore public offerings or acquisitions. This could lead to an innovative leap in AI technologies and applications.

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