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Leading AI labs like OpenAI and Google DeepMind cut ties with Scale AI after Meta invested $14 billion in the data vendor and hired its CEO. But AI labs still need data — leaving an opening for other startups that can supply it.
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The key players and factors in the AI data market are changing. Lately, it seems like Mercor — an AI hiring platform that sells data services to AI labs — may be one of the biggest benefactors of this shift.
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Today on Equity, Kirsten Korosec, Anthony Ha, and I (Max Zeff) dive deeper into how the AI data market is changing.
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Mercor, which was co-founded less than three years ago, seems to be entertaining offers from investors for a Series C at a $10 billion valuation, TechCrunch’s Marina Temkin reported earlier this week. The offers are rolling in, some of which Mercor says it’s declined, just seven months after it announced a Series B investment at a $2 billion valuation.
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Mercor has told investors that it’s on track to hit $500 million in ARR faster than Anysphere, the startup behind Cursor, which famously hit the milestone roughly a year after launching its core product.
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Surge, another competitor to Scale AI that’s larger than Mercor, seems to be the current frontrunner in the AI data race. Surge reportedly crossed $1 billion in revenue in 2024 with no VC-backing — and now, it’s in talks with investors to raise at a $25 billion valuation.
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But Mercor’s fast growth may be threatening to Surge, Scale AI, and every startup trying to sell data to AI labs.
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Beyond the traditional data labeling service that put Scale AI on the map, Mercor also offers products to help AI labs generate training environments for AI agents. These environments are quickly becoming the next battleground for AI data startups.
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Listen to the full episode to hear about:
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Bending Spoons’ acquisition of Vimeo for $1.38 billion, and what it means for the video industry.
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Why SpaceX is making a $17 billion bet on the direct-to-cell market, and what it all has to do with Apple.
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The long awaited IPO of Klarna, why it popped, and how other newly public companies like Figma and Coreweave are doing.
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Mercor’s new fundraising talks, and what’s going on the AI data space more broadly.
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Equity will be back next week. Subscribe wherever you get your podcasts!Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and posts every Wednesday and Friday. Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
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Maxwell Zeff
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Senior AI Reporter
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Maxwell Zeff is a senior reporter at TechCrunch specializing in AI. Previously with Gizmodo, Bloomberg, and MSNBC, Zeff has covered the rise of AI and the Silicon Valley Bank crisis. He is based in San Francisco. When not reporting, he can be found hiking, biking, and exploring the Bay Area’s food scene.
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You can contact or verify outreach from Maxwell by emailing maxwell.zeff@techcrunch.com or via encrypted message at mzeff.88 on Signal.
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View Bio
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Kirsten Korosec
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Transportation Editor
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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
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You can contact or verify outreach from Kirsten by emailing kirsten.korosec@techcrunch.com or via encrypted message at kkorosec.07 on Signal.
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View Bio
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Anthony Ha
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Anthony Ha is TechCrunch’s weekend editor. Previously, he worked as a tech reporter at Adweek, a senior editor at VentureBeat, a local government reporter at the Hollister Free Lance, and vice president of content at a VC firm. He lives in New York City.
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Theresa Loconsolo
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Audio Producer
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Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast. Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband. Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.
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You can contact or verify outreach from Theresa by emailing theresa.loconsolo@techcrunch.com.
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Social
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Mastodon rolls out quote posts with protections to prevent ‘dunking’
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Sarah Perez
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8:38 AM PDT · September 12, 2025
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Mastodon, an open source, decentralized alternative to X, is rolling out a somewhat controversial feature by adding quote posts, which will launch next week. The feature, which allows a user to quote someone else’s post and reshare it with their own response or commentary, has contributed to a culture of “dunking” on X, where users often deride other people by responding with snark or insulting humor.
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To address this concern, Mastodon says it’s implementing quote posts with safety controls.
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These protections are designed to allow quote posts to be used responsibly, to “expand discussions, make new connections, and amplify underrepresented voices,” the platform states.
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Image Credits:Mastodon
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Mastodon gives users several ways to control how their posts can be quoted. For starters, the platform lets users decide who can quote them through a setting where you can change your defaults. Here, you can set the permissions for who can quote you by choosing between “Anyone,” “Followers only,” or “Just me.” Additionally, you can control the visibility of quote posts by setting them to be visible to the public, to followers only, or a setting called “quiet public,” which makes the quotes public but removes them from Mastodon’s search, trends, and public timeline.
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Users will also be able to override their default settings on a post-by-post basis, if need be, by navigating to the “Visibility and interaction settings” within the composer screen. This would be useful if you know you’re about to say something controversial or anything that could attract unwanted attention from those with opposing views, for instance.
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Image Credits:Mastodon
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Plus, users will have control of their posts even after they’re quoted, the Mastodon blog post about the new feature explains.
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When someone quotes a post, the user being quoted is notified in the app, and they can choose to remove their original post from the other person’s quote post. This is accessible through the Options menu (the three dots icon). From this location, users can change the quote settings to address any future quoting of their post going forward. They can also block users to prevent them from seeing and quoting their posts in the future.
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Techcrunch event
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Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025
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Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
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Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025
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Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
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San Francisco
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|
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October 27-29, 2025
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REGISTER NOW
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Support for quote posts will first arrive over the week ahead to the larger Mastodon servers at mastodon.online and mastodon.social. It will then become available in Mastodon’s 4.5 software update.
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To quote a post, you’ll find the new option under Mastodon’s Boost (similar to X’s repost/retweet feature). Because the fediverse, or open social web, is a network of servers running different software, quote posts may not immediately appear everywhere, and some platforms may not update to use the technical specification enabling quote post support right away.
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Topics
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Apps, Apps, Mastodon, open social web, Social, social, social media, TC
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Sarah Perez
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Consumer News Editor
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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
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You can contact or verify outreach from Sarah by emailing sarahp@techcrunch.com or via encrypted message at sarahperez.01 on Signal.
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October 27-29, 2025
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San Francisco
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Julie Bort
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OpenAI announces AI-powered hiring platform to take on LinkedIn
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Maxwell Zeff
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Mercor has its moment in the AI data race
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From Wikipedia, the free encyclopedia
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Welcome to Wikipedia,
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the free encyclopedia that anyone can edit.
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111,223 active editors 7,055,170 articles in English
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111,223 active editors 7,055,250 articles in English
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From today's featured article
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Felice Beato (c. 1832 – 1909) was an Italian-British photographer. He was one of the first to take photographs in East Asia and one of the first war photographers. He is noted for his genre works, portraits, and views and panoramas of the architecture and landscapes of Asia and the Mediterranean region. His travels let him create images of countries, people and events that were unfamiliar and remote to most people in Europe and North America. His work provides images of such events as the Indian Rebellion of 1857 and the Second Opium War, and represents the first substantial body of photojournalism. Beato was the official photographer of the Nile Expedition led by G. J. Wolseley to Khartoum, Sudan, in relief of General Charles Gordon. Beato influenced other photographers; and his impact in Japan, where he taught and worked with other photographers and artists, was particularly deep and lasting. He pioneered and refined the techniques of hand-colouring photographs and making panoramas. (Full article...)
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In the news
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Jair Bolsonaro
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The Brazilian Supreme Court sentences former president Jair Bolsonaro (pictured) to 27 years in prison for his involvement in plotting a military coup.
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The Supreme Federal Court convicts former Brazilian president Jair Bolsonaro (pictured) to 27 years in prison for involvement in the 2022 Brazilian coup plot.
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Political activist Charlie Kirk is shot and killed at an event in Utah, United States.
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NATO forces shoot down Russian drones over Poland.
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Israel attacks the Hamas leadership in Doha, Qatar.
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