AI’s Next Job? Recruiting People To Train More AI

Recruiting for AI: How Mercor Turns Human Expertise Into Success

In the bustling tech corridors of San Francisco, Mercor has carved out a niche by marrying human skill with artificial intelligence, creating a unique market for expert data trainers.

The Breaking Point

Mercor's journey took a pivotal turn in June when Meta’s partial acquisition of Scale AI shook the industry. Viewing the shake-up as an opportunity, Mercor founders Brendan Foody and Adarsh Hiremath saw a chance to leapfrog into a leadership position in data labeling by focusing on recruiting top-tier human talent to train AI models. This strategic shift brought new energy akin to their office mascot, a six-week-old Bernese Mountain Dog, symbolizing youthful exuberance and explosive potential.

Beneath the Surface

Foody, Hiremath, and Surya Midha, all Thiel Fellows and longtime friends, cultivated this innovative approach by initially founding Mercor in 2023 as an AI recruiter. But as the AI race intensified, they quickly transitioned to staffing specialists capable of teaching AI complex reasoning, thus defining a new business model in the AI training domain. Notably, this pivot aligns with Mercor’s original mission of matching skilled individuals to suitable roles, while significantly boosting the company’s growth trajectory.

The Ripple Effect

By orchestrating a team of highly-qualified experts like PhDs and legal professionals, Mercor has secured an enviable position in the data labeling sector, challenged by heavyweights like Surge and Turing AI. The company's meteoric rise, reflected in its $100 million annualized revenue run rate and significant profit margins, underscores the critical role human expertise will continue to play in training AI systems. As Scale AI’s neutrality comes into question, Mercor’s strategic foresight and commitment to quality data elevate its profile as a formidable player in an evolving industry.