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Meta paused its work with AI training startup Mercor after a data breach

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Meta has paused its work with Mercor and is investigating after a recent data breach at the AI training startup, a source familiar with the matter confirmed to Business Insider.

Mercor, which was valued at $10 billion in a funding round in October, works with major tech companies like Meta to train AI models with the help of thousands of human contractors and experts. Wired first reported on Friday that Meta had paused all its work with the company.

Meta declined to provide a comment.

Mercor confirmed to Business Insider on Friday that the company had experienced a security breach.

"The privacy and security of our customers and contractors is foundational to everything we do at Mercor. We recently identified that we were one of thousands of companies impacted by a supply chain attack involving LiteLLM," Mercor said in a statement, referring to the open source project LiteLLM.

"Our security team moved promptly to contain and remediate the incident," the company added. "We are conducting a thorough investigation supported by leading third-party forensics experts."

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Kelsey Vlamis
Kelsey Vlamis is a senior reporter for Business Insider, where she covers business and tech news. She also writes business stories about travel, luxury, and culture. Previously, she covered the environment, outdoors, and indigenous issues.Her feature story "Disaster at 18,200 feet" received awards from the New York Press Club and the North American Travel Journalists Association, as well as honorable mention from the Society of American Travel Writers. She has also received an American Journalism Online Award for her coverage on missing and murdered Indigenous people in Wyoming.She's appeared on CBS, NPR, NBC, and other outlets to discuss her reporting. She previously worked on the world news desk at the BBC in London and received a master's in journalism from Northwestern University.She can be reached by email at kvlamis@jkmperu.com or via the encrypted-messaging app Signal at kelseyv.21.
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Charles Rollet
Charles Rollet is Business Insider's tech correspondent in San Francisco, where he focuses on breaking major news about the AI industry. In 2025, he led an investigation which revealed that Scale AI had inadvertently exposed confidential data about its workers and clients. In 2026, he was the first to break the news that Meta had halted a controversial keystroke tracking program.Prior to joining BI, Charles worked at TechCrunch covering startups and VC in San Francisco. Before that, he was based in Southeast Asia for a decade, where his work won a Gerald Loeb award and was nominated for a Society of Publishers in Asia award. His reporting on the surveillance industry led to US human rights sanctions on five Chinese security camera manufacturers.Charles is especially interested in how frontier AI models are built and trained. He has a master's degree in business reporting from NYU and a bachelor's degree in history from Northwestern.You can contact Charles securely on Signal at charlesrollet.12 or +1-628-282-2811. Charles keeps sources anonymous. Please use a non-work device to reach out.