AI training startup Mercor is reportedly in early talks to raise a new funding round at a $20 billion valuation, according to sources cited by Bloomberg. If completed, the deal would double the company's worth in a matter of months, following its $350 million Series C in October that valued the firm at $10 billion. The rapid rise underlines the intense investor appetite for companies supplying the data and services used to train artificial intelligence.

Mercor reportedly told investors it had already received a term sheet at the new valuation, though talks remain at an early stage. The news coincides with founder-CEO Brendan Foody claiming on X that annualised revenue run rate had passed $2 billion, a doubling in four months, and the company's acquisition of Deeptune, an AI-agent training firm whose entire team is joining Mercor. The developments suggest Mercor has moved on from a difficult early 2026, when it faced a data breach and lawsuits from several contract workers.