URGENT UPDATE: Mercor has just revealed it is paying over $1.5 million each day to human contractors training AI models, according to CEO Brendan Foody. This groundbreaking announcement comes as the company recently secured a funding deal that values it at a staggering $10 billion.
In an exclusive interview on the TBPN show, Foody emphasized the rapid growth of Mercor, which currently employs over 30,000 contractors to assist major tech firms like OpenAI and Anthropic. “The company has been growing like crazy,” he stated, highlighting the increasing demand for human expertise in AI training.
As businesses race to enhance their AI capabilities, Mercor stands at the forefront of a new category of work. Foody described this phenomenon as “humans training AI,” noting that millions of people will dedicate the next decade to imparting the nuanced judgment and taste that only humans can offer. This shift signifies a transformative era in the labor market.
Mercor’s strategy aligns with a growing trend in tech, where human trainers are compensated handsomely for their efforts. Reports indicate that workers can earn up to $100 an hour training AI systems, making this a lucrative opportunity for freelancers. From meme specialists teaching xAI’s chatbot Grok to understand internet culture, to experts tutoring AI in various fields like finance and languages, the market is booming.
Foody hinted at a potential IPO for Mercor, stating it is “potentially on the horizon,” though no specific timeline was provided. This statement adds to the excitement surrounding the company’s future prospects.
The rapid expansion of companies like Mercor is indicative of a larger trend, with startups in the AI training sector attracting significant investment and achieving soaring valuations. Notable figures in the industry, such as Edwin Chen of Surge AI and cofounders of Scale AI, are becoming some of America’s youngest billionaires amid this tech gold rush.
However, the work of training AI is not without its challenges. Freelancers have reported mixed experiences, with some earning thousands of dollars monthly, while others describe the job as monotonous and chaotic. As the demand for AI expertise continues to rise, the industry must navigate these complexities.
As developments unfold, the impact of Mercor’s approach to AI training will be closely monitored. The ongoing evolution of the tech sector underscores the urgency of adapting to new labor dynamics and the pivotal role of human intelligence in shaping the future of AI.
Stay tuned for more updates as this story develops.
