Reports suggest that AI training startup Mercor is currently in discussions to secure a new funding round valued at an impressive $20 billion, as revealed by sources to Bloomberg. This substantial valuation marks a significant increase from the company’s previous value back in October, where it successfully raised a $350 million Series C round at a $10 billion valuation.

Although in the early stages, Mercor has reportedly informed investors of a term sheet received at this new valuation. Additionally, founder-CEO Brendan Foody recently shared on X platform that the company’s annualized revenue run rate has surged to over $2 billion, reflecting a remarkable 100% growth within just four months.

In a strategic move, Mercor announced its acquisition of Deeptune, a company specializing in AI agent training, further strengthening its capabilities in the AI industry. The integration of the entire Deeptune team into Mercor signifies a promising collaboration, as highlighted in the official press release. These recent developments, including the revenue surge, acquisition news, and potential funding raise, indicate Mercor’s resilience in overcoming challenges faced earlier in 2026, such as a data breach and legal disputes with contract workers, as reported by Business Insider.