AI training startup Mercor is reportedly in discussions to secure new funding at a $20 billion valuation, a significant leap from its previous $10 billion valuation set during its Series C round in October. Sources indicate these talks are in their early stages, though Mercor has informed investors it has already received a term sheet at the elevated valuation.

This potential funding news coincides with founder-CEO Brendon Foody's announcement that the company's annualized revenue run rate has surpassed $2 billion, doubling in just four months. Mercor also revealed its acquisition of Deeptune, an AI agent training firm, with Deeptune's entire team expected to integrate into Mercor.

These developments suggest Mercor may be overcoming earlier challenges, including a data breach and lawsuits filed by contract workers in early 2026. The combination of accelerated revenue growth, strategic acquisitions, and substantial new investment signals strong market confidence in Mercor's trajectory.