Evals and training data are the primary bottlenecks in model performance, and as long as better models are valuable to the economy, demand for them will grow — making Mercor a tech-enabled services company worth $200 billion.
Oswald argues that since eval and training data are the binding constraint on model performance, and demand for better models will only increase, Mercor's core business has massive growth potential. ✦ AI generated
Oswald Nitski · 20VC · 2026-07-25 · original ↗
starts at this moment · 57:54
“Can you please paint the bull case for how Brex is a $200 billion company.”
We're basically like a tech-enabled services company. Our services are incredibly valuable in driving revenue gains for our customers primarily through better model capabilities. Evals and training data are the primary bottlenecks in model performance right now. If every enterprise needs to have specialized proprietary models, even if the capabilities start to saturate, the eval serves as the PRD for exactly what you want, but also the optimization objective for better performance. As long as better models are valuable to the economy, there will be demand for eval sets and training sets. If we can make that process faster and faster, we can serve a growing demand for human data eval training. And then we also have a growing agent deployment enterprise arm as well.
verbatim transcript · starts at 57:54
57:54bottlenecks in model performance right now. If every enterprise needs to have specialized proprietary models, even if the capabilities start to saturate, the eval serve as the PRD for kind of like exactly what you want, but also the optimization objective for better performance. As long as more and more as long as better models are valuable to the economy, >> [snorts] >> there will be demand for eval sets and
58:20training sets. If we can make that process faster and faster, we can serve a growing demand for human data free eval training. And then we also have a growing agent deployment enterprise arm as well. >> What line of revenue do you not have today that you think will be very significant in 3 years' time? >> I think that real-world, like physical data, is going to grow significantly
58:45over the next 3 years. Robotics is Robotics is an interesting area for us. The data market for robotics is nascent relative to GenAI, relative to you know, like autonomous vehicles as well. And we think that's going to grow a lot. >> Do you scale supply ahead of demand? >> We at times retain exceptional talent to do work that might be valuable in the future. And we can do like off-the-shelf data