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Today’s lineup: AI training startups are flooded with cash, ChatGPT may be emerging as an early mental health warning system, and the global race for rare earth minerals is heating up. Let’s dive in—and stay curious.
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Mercor Hits $10 Billion Valuation Training AI Models
Founded in 2023 by three Thiel Fellows, Mercor trains AI models for OpenAI and Anthropic using a global network of 30,000 contractors. The startup just raised $350 million, boosting its valuation to $10 billion, 5x higher than in February. After Meta’s $14B investment in Scale AI, Mercor’s revenue quadrupled as clients sought alternatives. Contractors earn an average of $85/hour, with Mercor taking 30–35% in fees. Now the company faces a lawsuit from Scale AI, underscoring the fierce competition in the booming AI data-labeling industry. What is AI Systems Training?Training AI systems means feeding machine learning models human-labeled data and expert feedback so they learn to think, reason, and communicate like people. This involves tagging images, text, and audio, ranking chatbot responses (known as reinforcement learning from human feedback), and having professionals like doctors or lawyers review model outputs for accuracy. Major players include Scale AI, Sama, Appen, Remotasks, and Mercor, which work with companies like OpenAI, Anthropic, and Meta. The global AI training data market is projected to exceed $30 billion by 2030 with a 25%+ CAGR, driven by demand for higher-quality and domain-specific data. There’s still a significant opportunity for startups that specialize in niche data labeling (medical, legal, multilingual, or regional) or that build human-in-the-loop tools to make AI feedback faster and more accurate. In short, training AI remains one of the most critical and profitable layers of the AI ecosystem. What we are reading:
AI as an Early Warning System for Mental Health
OpenAI reports that about 560,000 ChatGPT users weekly show signs of mania or psychosis, and 2.4 million express suicidal thoughts or emotional dependence. With input from over 170 psychiatrists, GPT-5 can now detect distress and guide users toward help, reducing harmful responses by up to 52%. Used responsibly, ChatGPT could act as an early-warning tool, spotting users in crisis and prompting professional intervention. The key is consent and human oversight: users would opt in to share emergency contacts, and trained reviewers would confirm any alert before notifying family or emergency services. AI won’t replace care, but it could save lives by recognizing when someone needs help and ensuring that help arrives. 🧰 AI Tools of The Day
The Rare Earths Boom
The U.S. and other thriving economies are pouring billions into rare-earth mining and processing to cut reliance on China, which still controls over 70% of global supply. After Beijing restricted exports this year, prices soared and factories stalled, sparking massive Western investment. Major deals include Orion Resource Partners’ $1.8B fund, $2.2B in U.S. financing for Australian projects, and JPMorgan’s $10B national security initiative, starting with Perpetua Resources in Idaho. Rare minerals like neodymium, dysprosium, gallium, and antimony, mostly found in China, Australia, the U.S., and Africa, are essential for EVs, chips, and defense tech. Companies like Lynas, MP Materials, and Iluka stand to benefit as nations race to secure supply chains that power the AI, green energy, and tech revolutions. 🧰 AI Guides
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Tuesday, October 28, 2025
The Rare Earths Boom
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