AI Infrastructure Startup Modal Raises $750M Series D at $15.75B Valuation

Modal Labs, an AI infrastructure provider, announced today that it has raised $750 million in a Series D funding round led by Accel, with participation from Kleiner Perkins and several existing investors. The company's new valuation stands at $15.75 billion, more than triple its value following its previous funding round in May.

The valuation bump reflects Modal's rapid growth. According to the company, its annualized revenue has more than tripled since the May round to exceed $1 billion. Nearly a third of this revenue comes from Sandboxes, a cloud service providing hosted containers optimized for AI workloads used for model training and running AI agents.

Modal stated that it will invest a portion of the newly raised funds in product development, planning to launch services focused on reinforcement learning and post-training phases to improve the reasoning capabilities, safety, and cost-efficiency of AI models.