Mercor, the artificial intelligence training startup, is reportedly in discussions to raise a new funding round at a valuation of $20bn (£15.5bn), according to sources cited by Bloomberg. This would represent a sharp increase from the $10bn valuation it secured during its $350m Series C round just nine months ago in October 2025. The conversations are at an early stage, but the company has told investors it has already received a term sheet at the higher valuation.
Founder and chief executive Brendan Foody took to social media platform X to announce that the company’s annualised revenue run rate had crossed $2bn — a 100 per cent increase in just four months. The revenue milestone, combined with the potential funding round, suggests Mercor is rapidly scaling its operations despite a turbulent start to 2026. Earlier this year, the company suffered a data breach and faced lawsuits from contract workers, as reported by Business Insider.
On Thursday, Mercor also announced the acquisition of Deeptune, a company specialising in training AI agents. The entire Deeptune team will join Mercor as part of the deal, according to a press release. The move signals Mercor’s ambition to expand beyond its core training services into the growing field of autonomous AI agents, which are increasingly used in sectors from customer service to logistics.
For UK businesses, the rapid growth of companies like Mercor underscores the intense demand for AI training infrastructure. However, it also raises regulatory questions. The UK’s Information Commissioner’s Office (ICO) has been scrutinising data handling practices in the AI sector, particularly after Mercor’s own data breach. Meanwhile, the European Union’s AI Act, which came into force earlier this year, imposes strict requirements on high-risk AI systems, and UK firms operating in or with the EU must ensure compliance.
Dr. Anika Patel, a technology policy researcher at the University of Cambridge, commented: “Mercor’s trajectory shows how quickly AI training companies can scale, but it also highlights the risks around data security and labour practices. For the UK economy, the challenge is to foster innovation while maintaining public trust and regulatory rigour. The ICO’s response to incidents like Mercor’s breach will set a precedent for the entire sector.”
The potential $20bn valuation would place Mercor among the most valuable private AI companies globally. For UK consumers, the implications are mixed: faster development of AI tools could improve services, but it also raises concerns about data privacy and job displacement. The UK government’s AI Opportunities Action Plan, published earlier this year, aims to position Britain as a leader in safe AI development, but the pace of private sector growth may outstrip current regulatory frameworks.