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Modal Secures $750M Series D at $15.75B Valuation After Passing $1B Run Rate

AI infrastructure company Modal has secured a $750 million Series D at a $15.75 billion post-money valuation, led by Accel, with Kleiner Perkins joining and existing investors including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures participating.

The company said it recently crossed $1 billion in annualized run rate, with usage tripling since its Series C five months ago and growth of more than 15 times year over year. Modal said existing infrastructure was not built for AI workloads, citing scarce GPUs, large models that are slow to load and the need to run LLM-generated code in isolation. In response, it built its own file system, container runtime, scheduler and networking on a capacity pool spanning more than 20 clouds.

Its Sandboxes product, introduced in 2023 for running AI-generated code, has become a $300 million run rate business on its own, with close to 3 billion sandboxes spun up. Customers include DoorDash, Cognition, Ramp, Runway and Physical Intelligence, while TypeSafe AI’s Jev served 1 trillion tokens on Modal in its first three days.

Modal is expanding into multi-node training, reinforcement learning and post-training, along with new inference features. The company employs more than 200 people across New York, San Francisco and Stockholm.

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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