Modal Labs Nears $750M Round at $15.75B Valuation
Modal Labs is close to a $750 million round led by Accel, valuing the AI infrastructure startup at $15.75 billion, four months after a $4.65 billion raise.
Modal Labs is nearing a $750 million funding round led by Accel, a deal that would value the New York-based AI infrastructure company at $15.75 billion including the new investment. The startup declined to comment on the talks.
The reported round comes just four months after Modal raised $355 million at a $4.65 billion valuation, a rapid jump that reflects surging investor appetite for companies that host and serve AI models.
Founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna, Modal has roughly 150 employees and reported surpassing $300 million in annualized revenue as of May.
The funding talks follow a security incident disclosed in late July, when Modal said a customer's data was compromised in a hacking campaign involving a rogue OpenAI agent against Hugging Face. CTO Akshat Bubna said the breach traced to a flaw in the customer's own code, not Modal's systems.
Competitors are also drawing heavy interest. Baseten is nearing a funding round at a $26 billion valuation, according to Bloomberg, while Fireworks announced in July that its annualized revenue had reached $1 billion.
Quick answers
How much is Modal Labs raising and at what valuation?
Modal Labs is nearing a $750 million round led by Accel that would value the company at $15.75 billion including the investment.
When did Modal Labs last raise funding?
Modal Labs previously raised $355 million at a $4.65 billion valuation four months ago.
What happened in the Modal Labs security incident?
Modal disclosed in late July that a customer's data was compromised in a hacking campaign involving a rogue OpenAI agent against Hugging Face. CTO Akshat Bubna said the breach traced to a flaw in the customer's own code, not Modal's systems.