AI infrastructure startup Modal Labs is reportedly in discussions with investors about a potential funding round that could value the company at approximately $2.5 billion, according to sources familiar with the matter. If completed, the round would more than double the company’s $1.1 billion valuation from its Series B funding announced less than five months earlier. General Catalyst is said to be in talks to lead the investment.
Founded in 2021 by CEO Erik Bernhardsson, Modal focuses on artificial intelligence inference infrastructure, helping companies run trained AI models more efficiently to reduce compute costs and improve response speed. The company’s annualized revenue run rate is estimated at about $50 million.
The reported fundraising discussions come amid strong investor interest in AI inference platforms, as companies race to build cost-efficient infrastructure for large-scale AI deployment.
Featured image: Credit: Modal Labs
