WSJ Tech News Briefing: TNB Tech Minute - AI Startup Mercor Valued at $10 Billion
Date: October 27, 2025
Host: Zoe Culkin, The Wall Street Journal
Episode Overview
This episode delivers a rapid-fire briefing on the latest in technology business, with exclusive news and sharp analysis on three major stories:
- The skyrocketing valuation of AI startup Mercor
- Novartis’s multimillion-dollar biotech acquisition
- Australia’s lawsuit against Microsoft regarding AI service fees
Key Discussion Points and Insights
1. Mercor's Explosive Growth in the AI Sector
[00:35]
- Main Story: Mercor, an AI startup integral to training state-of-the-art AI models, is finalizing a funding round set to value the company at $10 billion—five times its valuation from just eight months earlier (February 2025).
- Growth Drivers: The surge is credited to Mercor’s aggressive shift into “one of the most lucrative sectors in the AI boom”—hiring thousands of workers to manually train AI systems (which “could one day replace them”).
- Industry Context: This marks a significant moment in the development of AI infrastructure, highlighting both the opportunities (massive valuation growth) and ironies (humans training their eventual AI replacements).
"Mercor, a startup that's become a critical component in the ecosystem improving top AI models, is finalizing a new funding deal that would value the company at $10 billion, five times the value it had in February."
— Zoe Culkin [00:38]
"...hiring thousands of workers to train the machines that could one day replace them."
— Zoe Culkin [01:08]
2. Novartis to Acquire Avidity Biosciences
[01:15]
- What Happened: Swiss pharmaceutical company Novartis is set to buy San Diego-based Avidity Biosciences for $12 billion.
- Strategic Focus: Novartis aims to boost its foothold in treatments for neuromuscular disorders, expanding into a multi-billion-dollar market.
- Deal Details: Shareholders of Avidity will receive $72 per share, a notable 46% premium compared to the previous closing price.
"Avidity is developing experimental drugs based on emerging technology to treat forms of muscular dystrophy, a multi-billion dollar market."
— Zoe Culkin [01:25]
3. Australia Sues Microsoft Over ‘CoPilot’ AI Service Fees
[01:43]
- Legal Action: The Australian Competition and Consumer Commission (ACCC) is suing Microsoft.
- Allegations: Microsoft allegedly made it overly difficult for 2.7 million Microsoft 365 customers in Australia to avoid paying for the new “CoPilot” AI tools after their subscriptions auto-renewed.
- Customer Impact: The lawsuit seeks both fines and refunds, focusing on accusations that Microsoft failed to clearly communicate opt-out methods for new AI-related charges.
- Microsoft's Response: The tech giant is “reviewing the allegations.”
"Australia's consumer watchdog is suing Microsoft, alleging the US tech giant misled its 2.7 million customers by making it difficult for them to avoid paying for new AI services."
— Zoe Culkin [01:43]
Notable Quotes & Memorable Moments
On the scope of quantum computing:
"It's very exciting to think about where we all sat at the dawn of classical computation and not to ever imagine where we are today."
— Katie Pizzolato, IBM Quantum Platform [00:12]
On the workforce paradox in AI:
"...hiring thousands of workers to train the machines that could one day replace them."
— Zoe Culkin [01:08]
Timestamps for Important Segments
- [00:00] - Introduction; Katie Pizzolato on quantum computing frontiers
- [00:35] - Mercor’s funding and valuation story
- [01:15] - Novartis’s $12B acquisition of Avidity Biosciences
- [01:43] - Lawsuit: Australia vs. Microsoft over AI subscription fees
- [02:15] - Content ends (sponsor segment follows)
Tone & Language
The tone is brisk, factual, and authoritative—delivering exclusive news and concise context for an audience of tech professionals and investors.
In summary:
This episode highlights the frenzied pace and sometimes paradoxical nature of innovation and regulation in AI, biotech, and big tech business models. The Mercor story dominates, showcasing how vital—yet human-dependent—AI development remains in 2025.