Investing.com -- Mercor (WA: MCRP ), a San Francisco-based startup specializing in recruiting for generative artificial intelligence (AI) development, has secured new funding that values the company at $2 billion, according to WSJ.

The startup connects experts in a variety of fields, including law and medicine, with contract jobs to help develop generative AI models. These models form the advanced algorithms that power chatbots like OpenAI’s ChatGPT.

The Series B funding round was led by venture firm Felicis.

The fundraising process for Mercor was highly competitive, with investors escalating the startup's valuation from approximately $1 billion at the initiation of the process.

As of December, the company had raised around $75 million through this new financing. The total amount may still increase, as the company has not yet finalized the round.

In the previous year, Benchmark had led a Series A funding round for Mercor, valuing the company at $250 million.

Mercor was established two years prior by three college dropouts: Brendan Foody, who serves as the startup's CEO; Adarsh Hiremath, the CTO; and Surya Midha, the COO.

The startup's primary focus is on assisting AI companies in finding individuals with expertise in specific study areas, such as law, chemistry, and medicine, to aid in the development of AI models. The job advertisements often state that the candidates "will help create high-quality data that will inform the future of AI innovation."

These individuals usually sign on as contractors, with OpenAI being one of Mercor's largest clients.

According to WSJ, citing Mercor, the company has a $50 million annual revenue run rate and is growing at a rate of 40% month over month.

The company has around 30 employees, with a median age of approximately 22 years.

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