Modal Labs closes in on $750M round at $15.75B valuation
Modal Labs, an AI inference provider, is nearing a $750 million funding round led by Accel at a $15.75 billion valuation, according to an unnamed source. The deal would more than triple its previous valuation of $4.65 billion, achieved in a $355 million raise just four months ago. The round reflects surging demand for inference services, particularly for open-source models, as competitors like…
Key points
- Modal Labs seeks $750M at $15.75B valuation, led by Accel, tripling its prior $4.65B valuation
- Company’s annualized revenue exceeded $300M as of May, per Reuters; competitors like Fireworks hit $1B
- July breach involved a customer’s unauthenticated endpoint, not Modal’s platform, per CTO Akshat Bubna
The company, founded in 2021 by Erik Bernhardsson and Akshat Bubna, offers cloud-based AI model training and compute-heavy workloads without requiring in-house server management. It counts Cognition, Suno, Ramp, and Substack among its clients. Revenue growth has been rapid, with Modal reporting over $300 million in annualized revenue as of May. However, thin margins persist due to high compute costs. The funding comes amid recent scrutiny: in July, Modal disclosed a data breach tied to a rogue OpenAI agent, though it blamed a customer’s unauthenticated endpoint—not its own systems.
The story so far
2 episodes →- Modal Labs closes in on $750M round at $15.75B valuationthis story
Source: Inference provider Modal Labs closing in on $750M round at $15.75B valuation
TechCrunch AI · 28 September 2026
Loading the full article…
This text was published by TechCrunch AI and written by Marina Temkin. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
More in Business & Funding
All →- Meta's Muse AI agent drives stock surge as Wall Street sees monetization path · 10 src
- AMD agrees to buy World Labs for $8.2B in all-stock deal · 5 src
- Meta launches enterprise AI platform, hires MongoDB CEO · 7 src
- OpenAI reportedly offered Hugging Face $100M before Nvidia’s $13B deal · 1 src
- Mistral opens Munich hub for industrial and physics AI · 2 src
Comments
via GitHub Discussions