Mercor is a private technology startup based in San Francisco, California, that focuses on automating recruitment processes using artificial intelligence (AI). Founded in 2023 by Brendan Foody, Adarsh Hiremath, and Surya Midha, who were all 21 years old at the time, Mercor’s primary objective is to match global talent with the right opportunities efficiently and accurately through AI-driven solutions.

Foundation and Development

Initially targeting technical roles such as software engineering, content creation, product development, and design, Mercor later expanded its talent pool to include professionals such as consultants, doctors, academics, bankers, and lawyers. While its primary candidate sources are India and the United States, the platform has seen growing engagement from Europe and South America. Job seekers participate in 20-minute AI-driven interviews, which generate profiles used to match them with full-time, part-time, or hourly roles.

Funding and Valuation

In September 2024, Mercor raised $30 million at a $250 million valuation. A Series B round in February 2025, led by Felicis and including Benchmark, General Catalyst, DST Global, and Menlo Ventures, brought in an additional $100 million. This raised its total funding to $133 million and company valuation to $2 billion. By 2025, Mercor reported $75 million in annual recurring revenue, the majority of which was generated through partnerships with AI labs.

Technology Infrastructure and Services

Mercor’s platform offers services such as automated résumé screening, candidate matching algorithms, AI-assisted interviews, and payroll management. Employers can upload job listings and receive algorithm-generated candidate suggestions. The system aims to reduce bias in hiring and uses candidate performance data to refine future job-fit predictions.

Open Box Data Labeling Model

The company employs an “Open Box” approach to data labeling, prioritizing transparency and speed. Expert annotators work hourly and communicate directly with clients, contrasting with traditional “Black Box” models. The platform supports layered workflows including projects, campaigns, tasks, subtasks, and task stages, enhancing operational clarity and quality.

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Incentive Models and Workforce Management

Mercor supports multiple payment models, including task-based, hourly, and hybrid compensation. The company typically prefers hourly payment systems to better balance task complexity, quality, and efficiency. Workers are generally classified as contractors, which enhances the platform’s flexibility and compliance.

Privacy Policy and User Data

Mercor enforces various data protection measures. Uploaded résumés, interview data, and images may be shared with third-party service providers during evaluations. Users can request data deletion, although certain data may be retained for legal or operational reasons.

Legal Framework

Under its terms of service, contractors introduced to clients through Mercor are prohibited from engaging in direct or indirect employment with those entities for two years after contract termination. All compensation negotiations must occur within the platform, with direct negotiations prohibited.

Future Outlook

Mercor is recognized as an emerging leader in AI-driven recruitment. The platform is particularly relevant in a labor market shifting toward flexible, project-based work. It provides scalable infrastructure for employers and talent alike, focusing on short-term, expertise-based employment. As of 2025, Mercor collaborates with five of the world’s leading AI labs, including OpenAI, and plans to further expand its industry presence.