In the heart of San Francisco’s bustling tech scene, a trio of 22-year-old entrepreneurs has redefined what it means to achieve billionaire status. Brendan Foody, Adarsh Hiremath, and Surya Midha, high school friends from the Bay Area, have catapulted their AI recruiting startup, Mercor, to a staggering $10 billion valuation. This milestone not only surpasses Mark Zuckerberg’s record as the youngest self-made billionaire at age 23 but also signals a seismic shift in the AI landscape, where Gen Z innovators are outpacing industry veterans.

Mercor, founded in 2023, began as a platform to connect freelance programmers in India with U.S. companies. The founders, who met on their high school debate team, dropped out of college to pursue the venture full-time. They later received Thiel Fellowships, a prestigious grant for young entrepreneurs. According to Wikipedia, the company evolved to focus on data labeling and matching expert contractors with AI firms like OpenAI, emphasizing human expertise to train AI models.

The breakthrough came with a $350 million funding round led by Felicis Ventures, as reported by Forbes in an article titled ‘The World’s Youngest Self-Made Billionaires Are A Trio Of 22-Year-Old AI Founders’ (Forbes). This investment quintupled Mercor’s previous valuation from February 2025, when TechCrunch noted a $100 million raise at $2 billion (TechCrunch). Each founder holds about 22% stake, valuing their individual fortunes at around $2 billion each, per The Economic Times (The Economic Times).

From Debate Team to Tech Titans

Brendan Foody, now CEO, along with CTO Adarsh Hiremath and board chairman Surya Midha—two of whom are Indian-American—turned a hackathon side project into a powerhouse. As detailed in Finance Yahoo, Foody skipped finals to build Mercor, which teaches AI ‘what only humans know’ (Finance Yahoo). Their platform uses AI to interview and match talent, shifting to provide experts for training chatbots and models.

The founders’ youth hasn’t hindered their credibility. Backed by mentors like Larry Summers, as mentioned in India Today (India Today), they’ve attracted clients including major AI players. Posts on X highlight public fascination, with users like Vishal noting how they beat Zuckerberg’s record, amassing over 500,000 views (X posts).

NDTV reports that the trio’s success stems from securing $350 million, valuing Mercor at $10 billion and making them the youngest self-made billionaires (NDTV). This eclipses previous records, including Alexandr Wang of Scale AI, who was 28 when he hit billionaire status, as per X posts referencing Big Brain Business (X posts).

The AI Hiring Revolution

Mercor’s model taps into the booming demand for human-in-the-loop AI training. As SF Standard describes, CEO Foody envisions white-collar contractors earning riches by teaching machines human-like behavior (SF Standard). The company provides experts to label data and refine AI, addressing a critical need in the industry.

However, rapid growth has brought scrutiny. Just weeks after the funding round, Forbes reported that Mercor allegedly terminated an AI training project involving thousands of contractors, slashing wages by a third (Forbes). Contractors accused the company of offering rehires at lower rates, sparking backlash.

NewsBytes echoed this, noting criticism over pay reductions amid the founders’ new billionaire status (NewsBytes). X posts from users like Chamil R. Tennekoon and Forbes amplified the story, with one post stating, ‘The three 22-year-old cofounders of Mercor became billionaires last month. Now workers say they canned an AI project that involved thousands of contractors, then offered to rehire workers at a lower hourly rate’ (X posts).

Navigating Controversy in Hypergrowth

The wage controversy highlights tensions in the AI gig economy. As KTVU FOX 2 notes, the founders’ journey from Bay Area classmates to billionaires is inspirational, but the layoffs raise questions about labor practices in startups (KTVU FOX 2).

Comparisons to other young AI moguls abound. While Mercor’s founders are the youngest at 22, a recent Forbes piece on Cursor AI details four MIT dropouts in their 20s becoming billionaires via a $2.3 billion funding round at $29.3 billion valuation (Forbes). This underscores Gen Z’s dominance in AI.

The Indian Express credits Mercor’s success to outpacing Zuckerberg, with the $350 million round cementing their record (The Indian Express). Yet, as Portugal Businesses News asks, ‘Who is the youngest self-made tech billionaire?’—pointing to Mercor’s trio (Portugal Businesses News).

Gen Z’s Broader Impact on Tech

Beyond Mercor, Gen Z founders are reshaping industries. X posts from Mohit Vaswani list prodigies like 18-year-old @alexcooldev with $19.5K monthly revenue, signaling a wave of young talent (X posts).

The Mercor story reflects broader AI trends, where human expertise remains vital. As Finance Yahoo profiles, Foody’s dropout path from Georgetown University to $10 billion CEO redefines ambition (Finance Yahoo).

Industry insiders watch closely as Mercor navigates growth and ethics. With posts on X garnering millions of views, the founders’ every move is scrutinized, blending admiration with calls for accountability (X posts).

Future Prospects in AI Innovation

Looking ahead, Mercor’s focus on AI-human synergy positions it for further expansion. The company’s shift from recruiting to data labeling aligns with AI’s evolution, per Wikipedia (Wikipedia).

Challenges like the contractor dispute could test resilience, but the founders’ track record suggests adaptability. As Nabila Jamal’s X post celebrates, ‘Meet the World’s Youngest Self-Made Billionaires, All 22!’—capturing global intrigue (X posts).

Ultimately, Mercor’s rise exemplifies how Gen Z is not just participating in tech but leading it, challenging established norms and records along the way.