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- AI hiring startup Mercor announced $100 million in a Series B funding round, reaching a $2 billion valuation.
- CEO Brendan Foody joined CNBC’s “Squawk Box” to discuss the company’s plans for further investment in AI technologies in the hiring landscape.
AI hiring startup Mercor announced on Thursday a $100 million Series B funding round, with the company reaching a $2 billion valuation.
The company was valued at $250 million just five months ago, raising $30 million in its Series A round in September. Since launching, Mercor has processed 300,000 candidates and conducted more than 100,000 interviews.
“At a high level, Mercor is training models that predict how well someone will perform on a job better than a human can,” CEO Brendan Foody said on CNBC’s “Squawk Box” Thursday morning.
The company trains AI models to make hiring decisions similarly to how a human would review a resume, conduct interviews and make recommendations. Foody said the company’s clients include top AI labs, but declined to confirm the names of the customers.
The new round of capital will allow Mercor to invest further on the supply side of its marketplace, Foody said, and to further develop the company’s AI technologies that vet candidates and improve predictions.
“We have a lack of data in driving the outcomes that we care about, and it just makes sense to look at the things that drive the outcomes we care about,” Foody said.
Foody said Mercor has grown more than 51% in revenue month-over-month over the past six months and is currently seeing the most in-demand jobs in sectors including software engineering, medicine, law and banking.
The company is profitable, he added, with a revenue run rate over $75 million.
As the company looks to a future of AI with more applications across sectors, Foody said he sees potential for the technology to be used more broadly, including in higher education.
“I think it’s almost certain that in the imminent future, all of this will converge towards a completely automated process, not only because it’s dramatically cheaper, but more importantly because it’s just a far, far more effective process than any process that a human could do,” Foody said.