AI training startup Mercor is currently negotiating a new funding round that could place the company’s valuation at approximately $20 billion, according to reports citing Bloomberg. This potential mark represents a doubling of the $10 billion valuation established during its $350 million Series C close last October. While these financing discussions remain in their early stages, Mercor has reportedly issued a term sheet to prospective investors at the elevated price point. The valuation push coincides with significant operational milestones. Founder and CEO Brendon Foody announced that the company’s annualized revenue run rate has surpassed $2 billion, reflecting a 100 percent increase over the past four months. To further expand its capabilities, Mercor also confirmed the acquisition of Deeptune, a specialized firm focused on AI agent training. The entire Deeptune workforce will integrate into Mercor following the deal. This combination of rapid revenue growth, strategic acquisition, and premium financing discussions suggests a decisive turnaround for the company. Earlier in 2026, Mercor faced substantial operational and legal headwinds, including a reported data breach and multiple lawsuits filed by contract workers. The current funding trajectory and financial metrics indicate that leadership is successfully navigating past those complications and scaling its market position in the competitive artificial intelligence sector.