Modal raises $750 million Series D at $16B valuation, reports $1B ARR
Modal announced a $750 million Series D financing that values the company at $16 billion, bringing its annualized run rate above $1 billion. The round follows a $5 billion Series C and reflects rapid growth, with the platform now operating close to three billion sandboxes for customers such as Dacagon, Suno, Runway and Cognition. Founder and CEO Erik Bernhardsson explained that Modal’s…
Key points
- Modal raised $750 million Series D at a $16 billion valuation.
- Company reports $1 billion annualized run rate and nearly three billion sandboxes.
- Sandboxes now generate about one‑third of Modal’s revenue.
The company’s approach reduces idle GPU costs and mitigates the risk of price drops for providers. Sandboxes now account for roughly a third of Modal’s revenue, driven by demand from coding agents, background agents and reinforcement‑learning workloads. Bernhardsson, formerly of Spotify and Better.com, highlighted the importance of fast startup times, custom filesystems and GPU memory snapshots in delivering responsive, cost‑effective AI services.
The story so far
3 episodes →- Modal raises $750 million Series D at $16B valuation, reports $1B ARRthis story
Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal CEO
Latent Space · 22 October 2026
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