Modal Labs Raises $355M at $4.65B Valuation as AI Infrastructure Demand Surges

Quick Facts

• Modal Labs raised $355M led by Redpoint Ventures and General Catalyst, reaching a $4.65B valuation
• The company’s annual revenue surged to $300M from $60M in September, a 5x increase in eight months
• Modal now works with 13 cloud providers, up from five last year, to meet surging AI compute demand

Modal Labs closed a $355 million funding round that values the serverless AI infrastructure startup at $4.65 billion. The New York-based company’s valuation jumped 323% from $1.1 billion when it last raised funds in September.

Redpoint Ventures and General Catalyst led the round. Accel and Menlo Ventures participated. The company raised the funding in two tranches, with the first group backing Modal at a $2.5 billion valuation before additional investor interest pushed the final valuation to $4.65 billion.

Modal’s annual revenue climbed to roughly $300 million, up from about $60 million in September. The 5x revenue increase reflects surging enterprise demand for AI infrastructure as companies adopt coding tools like Anthropic’s Claude Code.

“The last six months have been driving everything,” CEO Erik Bernhardsson told Reuters. “Coding for the last six months has been driving everything.”

The startup helps companies access GPUs for AI inference workloads. Its platform can scale from zero to thousands of containers or hundreds of GPUs in seconds across multiple cloud providers. Modal claims its technology saves customers up to 30% on inference costs.

Demand for compute capacity has forced Modal to expand its infrastructure partnerships. The company now works with 13 cloud providers, up from five last year. Bernhardsson said he now relies on compute from infrastructure firms he had never heard of months earlier.

Modal’s customer base includes Anthropic, Meta, Suno, DoorDash, and Applied Compute. Clients span biotechnology firms, hedge funds, and weather forecasting companies. The platform has launched over 1 billion sandboxes for AI agent workloads.

The funding reflects broader AI investment trends. Venture capital has poured $192.7 billion into AI firms in 2026, more than half of all global funding.

Bernhardsson and co-founder Akshat Bubna launched Modal in 2021. Both are gold medalists from the International Olympiad in Informatics. The company employs 153 people across offices in New York, San Francisco, and Stockholm.

Read more: Serverless AI infrastructure startup Modal Labs seals $355M funding round