Mercor, an AI training startup founded by young entrepreneurs, is investing over $1.5 million daily in a vast network of human contractors to enhance machine learning accuracy, signalling a disruptive shift in the future of AI development and employment.
Mercor, a rapidly growing AI training startup, is making headlines with its unprecedented daily investment in human contractors who train artificial intelligence models. According to Brendan Foody, the company's CEO and cofounder, Mercor pays over $1.5 million each day to more than 30,000 contractors worldwide who work to improve the accuracy, reasoning, and adaptability of AI systems. Foody described this human-led AI training as "a new category of work," reflecting the expanding role of human expertise in refining increasingly complex intelligent systems.
Founded by three 22-year-old college dropouts and backed by impressive funding rounds, Mercor has seen a meteoric rise in valuation and market influence. The company recently reached a valuation of $10 billion following a $350 million Series C funding round, which solidified the cofounders’ status as some of the youngest self-made billionaires globally. Mercor’s clientele includes heavyweight tech companies such as OpenAI and Google DeepMind, who rely on its vast network of contractors for domain-specific AI training in fields like software engineering, banking, and law.
This surge highlights a broader industry trend where human contractors play a vital role in training AI models. While machines excel in processing vast datasets, they still require humans to instill nuance, judgment, tone, and cultural context, skills that remain challenging for purely algorithmic systems to master. These contractors can earn significant hourly rates, reportedly up to $100 per hour, for their work in teaching chatbots how to interpret language, comprehend internet culture, and apply specialized knowledge. This new workforce is not just performing repetitive tasks but is essentially providing the initial training that enables AI agents to perform those tasks at scale independently.
Mercor’s business model and growth trajectory underscore the increasing demand for hybrid human-AI collaboration. The firm's annualized revenue run rate nears $450 million, signaling strong market appetite and investor confidence in AI training services. Industry observers note that companies like Scale AI and Surge AI have similarly achieved multibillion-dollar valuations by bridging the gap between human intelligence and machine learning, driving founders’ net worths into the billions.
Looking ahead, Foody hinted at an initial public offering for Mercor, though he withheld a precise timeline. Such a step would further cement the company's pioneering role in what he calls "teaching machines the judgment, nuance, and taste that only humans possess." As the AI revolution unfolds, Mercor exemplifies how human workers remain indispensable in crafting the intelligent systems of the future, blending creativity and expertise with cutting-edge technology.
📌 Reference Map:
- [1] (Benzinga) - Paragraph 1, Paragraph 4, Paragraph 6, Paragraph 7
- [3] (TechCrunch) - Paragraph 2, Paragraph 4
- [6] (Forbes India) - Paragraph 2
- [2] (CNBC) - Paragraph 4
- [5] (TechCrunch) - Paragraph 2
- [4] (Yahoo Finance) - Paragraph 1
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative presents recent developments, including Mercor's $10 billion valuation and daily payments exceeding $1.5 million to contractors. These events are corroborated by multiple reputable sources, such as Forbes and TechCrunch, published in October and September 2025, respectively. The earliest known publication date of substantially similar content is October 30, 2025, from Forbes. The report appears to be original, with no evidence of recycled content. The inclusion of updated data, such as the $10 billion valuation and daily payments, justifies a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative does not appear to be based on a press release, as it includes direct quotes from CEO Brendan Foody and detailed financial figures. No republishing across low-quality sites or clickbait networks was found. The content is original and timely. ([forbes.com](https://www.forbes.com/sites/richardnieva/2025/10/30/mercor-youngest-self-made-billionaires/?utm_source=openai))
Quotes check
Score:
10
Notes:
The direct quotes attributed to CEO Brendan Foody, such as describing human-led AI training as "a new category of work," are consistent with statements he has made in previous interviews. For instance, in an October 28, 2025, interview, Foody discussed Mercor's rapid growth and daily payments to contractors. No significant variations in wording were found, indicating the quotes are accurately reported. No earlier usage of these exact quotes was identified, suggesting they are original to this narrative. ([finance.yahoo.com](https://finance.yahoo.com/news/mercor-pays-over-1-5-065444594.html?utm_source=openai))
Source reliability
Score:
10
Notes:
The narrative originates from Benzinga, a reputable financial news outlet known for its coverage of market developments and company news. The information is corroborated by other reputable sources, including Forbes and TechCrunch, which enhances the credibility of the report. The CEO, Brendan Foody, is a verifiable individual with a public presence, including a profile on Forbes. ([forbes.com](https://www.forbes.com/profile/brendan-foody/?utm_source=openai))
Plausability check
Score:
10
Notes:
The claims made in the narrative are plausible and consistent with known industry trends. Mercor's rapid growth and significant daily payments to contractors align with reports from reputable sources, such as Forbes and TechCrunch. The narrative includes specific factual anchors, such as the $10 billion valuation, daily payments exceeding $1.5 million, and the involvement of major tech companies like OpenAI and Google DeepMind. The language and tone are consistent with typical corporate communications, and there is no excessive or off-topic detail unrelated to the claim. The structure and tone are appropriate for the subject matter. ([forbes.com](https://www.forbes.com/sites/richardnieva/2025/10/30/mercor-youngest-self-made-billionaires/?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative presents original and timely information about Mercor's recent developments, including its $10 billion valuation and daily payments to contractors. The quotes attributed to CEO Brendan Foody are consistent with his previous statements, and the source is reputable. The claims are plausible and supported by corroborating reports from other reputable outlets. No significant issues were identified, leading to a high confidence in the accuracy and credibility of the report.
