Modal Labs Raises $750M Series D at $15.75B Valuation as Annualized Revenue Tops $1B

AI infrastructure startup Modal Labs Inc. announced it raised $750M in a Series D funding round led by Accel, with participation from Kleiner Perkins and a half-dozen existing investors, valuing the company at $15.75B. The new valuation and the company's reported annualized revenue of over $1B have both more than tripled since Modal's previous funding round in May. Nearly a third of Modal's revenue is generated by Sandboxes, a hosted container service for model training and running AI agents that the company says can provision tens of thousands of containers per second and reached 1M concurrent containers in a recent internal test. Rather than owning physical data centers, Modal rents hardware from more than 20 cloud providers, allowing customer workloads to fail over if one provider experiences technical issues. Modal plans to invest a portion of the new capital into product development, including upcoming services for reinforcement learning and AI post-training.