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Modal Labs raised $750 million in a Series D led by Accel, valuing the AI cloud-infrastructure company at $15.75 billion, more than triple its May mark.
- Modal raised $750M in a Series D on October 14, 2026, at a $15.75B valuation, led by Accel.
- The round follows a $355M Series C in May 2026 at $4.65B.
- Annualized revenue run rate exceeds $1B; the Sandboxes product accounts for $300M of it.
Lead
Modal Labs, the New York-based serverless cloud-infrastructure startup, announced a $750 million Series D on October 14, 2026, at a $15.75 billion valuation. Accel led the round, with Kleiner Perkins joining as a new investor. Existing backers also participated: Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures.
The company says its annualized revenue run rate has passed $1 billion, up about 15 times in a year. Modal sells GPU capacity and the software around it, so developers can run and train AI models without managing servers.
What Does Modal Actually Sell?
Modal sells serverless compute for AI workloads: developers write code, and Modal handles GPU provisioning, containers, file systems and scheduling. It aggregates capacity from more than 20 cloud providers, which matters because GPUs remain scarce and large models are slow to load. CEO Erik Bernhardsson, a former Spotify engineer, has framed that scarcity as the core problem the platform addresses.
The fastest-growing line is Sandboxes, isolated environments where AI agents execute code. Modal has created nearly 3 billion of them since launching the product in 2023. Sandboxes now run at a $300 million annualized rate, roughly 30% of total run rate.
Customers include DoorDash, Ramp, Linear, Cognition, Runway, Physical Intelligence and 1X. The company has more than 200 employees across New York, San Francisco and Stockholm. Co-founder Akshat Bubna, previously at Scale AI, serves as CTO.
How Fast Has Modal's Valuation Moved?
Modal's valuation rose about 14-fold in 13 months. A Series B in September 2025, led by Lux Capital, raised $87 million at $1.1 billion. The Series C in May 2026, led by General Catalyst and Redpoint, raised $355 million at $4.65 billion. Five months later, the Series D priced the company at $15.75 billion.
The sequence implies the May round was priced well below what the market would pay within months. Usage reportedly tripled in the five months after the Series C, which is the gap the new price reflects. At $15.75 billion against a $1 billion run rate, the multiple is about 15.75 times annualized revenue. That is high for an infrastructure business with compute costs, but low next to the growth rate Modal reports.
The company's earlier funding was smaller: a $16 million Series A in October 2023 and a seed round led by Amplify Partners.
Why Is Capital Flooding Into AI Infrastructure?
Investors are paying for demand that already shows up in revenue, not only in model benchmarks. Modal's growth tracks the spread of coding agents and other autonomous software that needs a safe place to run generated code. Each agent session can spawn many short-lived environments, which suits a usage-billed serverless model.
Competition is dense and well funded. Baseten has a reported $13 billion valuation, Together AI $8.3 billion and Fireworks AI $17.5 billion. Modal sits slightly below Fireworks despite its higher claimed run rate than most peers. Large cloud providers also sell GPU access and could cut prices to defend share.
Concentration is another question. Modal's revenue depends on AI-native customers whose own spending is tied to venture funding and model costs. A slowdown in those customers' budgets would hit a usage-billed vendor quickly.
What Will Modal Do With the Money?
Modal plans to expand into training and fine-tuning products, adding to its existing inference and sandbox offerings. The company has not detailed a spending breakdown. A larger balance sheet also gives it room to secure GPU supply, which is the input competitors fight over hardest.
Expanding into training puts Modal in more direct contact with hyperscalers and specialized GPU clouds. Whether a developer-experience advantage holds against price pressure there is untested.
Outlook
Modal has moved from a $1.1 billion company to a $15.75 billion one in just over a year, on a reported $1 billion run rate and a sandbox business now at $300 million. The next tests are the training launch and gross margins as compute costs scale. Peer valuations in the $8 billion to $17.5 billion range suggest investors expect several large AI-infrastructure winners rather than one.
