Why experts writing AI evals is creating the fastest-growing companies in history | Brendan Foody (CEO of Mercor)

Show notes

Brendan Foody is the CEO and co-founder of Mercor, the fastest-growing company in history to go from $1M to $500M in revenue (in just 17 months!). At 22, he is also the youngest American unicorn founder ever. Mercor works with 6 of the Magnificent 7 and all top 5 AI labs to help them hire experts to create evaluations and training data that improve their models. In this conversation, Brendan explains why evals have become the critical bottleneck for AI progress, how he discovered this massive opportunity, and what the future of work might look like in an AI-driven economy. What you’ll learn: 1. Why evals are becoming the primary bottleneck for AI progress and what this means for AI startups 2. How Mercor grew to $500M revenue in 17 months (fastest in history) 3. Brendan’s meeting with xAI that changed his company’s trajectory 4. Which skills and jobs will remain most valuable as AI continues to advance (hint: jobs with “elastic” demand) 5. Why Brendan believes AGI and superintelligence are not happening anytime soon 6. The three unique core values that drove Mercor’s success 7. How Harvard Lampoon writers are making Claude funnier — Brought to you by: WorkOS—Modern identity platform for B2B SaaS, free up to 1 million MAUs Jira Product Discovery—Atlassian’s new prioritization and roadmapping tool built for product teams Enterpret—Transform customer feedback into product growth — Transcript: https://www.lennysnewsletter.com/p/experts-writing-ai-evals-brendan-foody — My biggest takeaways (for paid newsletter subscribers): https://www.lennysnewsletter.com/i/173303790/my-biggest-takeaways-from-this-conversation — Where to find Brendan Foody: • X: https://x.com/BrendanFoody • LinkedIn: https://www.linkedin.com/in/brendan-foody-2995ab10b/ — Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ — In this episode, we cover: (00:00) Introduction to Brendan Foody and Mercor (05:38) The “era of evals” (09:26) Understanding the AI training landscape (17:10) The future of work and AI (25:54) The evolution of labor markets (29:55) Understanding how AI models are trained (38:58) Building Mercor (53:27) Lessons from past ventures (56:55) The future of AI and model improvement (01:00:41) His personal use of AI and final thoughts — References: https://www.lennysnewsletter.com/p/experts-writing-ai-evals-brendan-foody — Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. Lenny may be an investor in the companies discussed. To hear more, visit www.lennysnewsletter.com

Guests

Brendan Foody

Co-Founder and CEO

Mercor