Modal Funding Reaches $750 Million Series D at $15.75 Billion Valuation

Modal Labs, the New York-based AI infrastructure startup founded in 2021, announced on October 14, 2026, that it raised $750 million in a Series D round at a $15.75 billion post-money valuation while crossing $1 billion in annualized run rate revenue.

Modal Funding Round Details and Recent Growth

The round was led by Accel with participation from Kleiner Perkins and existing backers including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners, and Bain Capital Ventures. Total disclosed funding now stands at approximately $1.22 billion. The new valuation sits at roughly 16 times the $1 billion ARR milestone. Usage tripled between the May 2026 Series C and the current round, with revenue expanding more than 15 times year over year.

Sandboxes for agents, reinforcement learning, and untrusted code now account for about $300 million of the ARR, or 30 percent of the total. Nearly 3 billion sandboxes have launched cumulatively, with capacity scaling toward 1 million concurrent instances. One customer, TypeSafe AI, reported that its Jev product processed 1 trillion tokens in its first three days on the platform. Revenue had reached roughly $60 million ARR by September 2025 and approximately $300 million by May 2026.

CEO Erik Bernhardsson stated that demand has accelerated since the prior round with no sign of slowing. The company noted that AI workloads continue to require new infrastructure primitives for elastic scaling across GPUs and CPUs without manual management.

Modal Labs AI Infrastructure Platform and Customer Use Cases

Modal operates a serverless platform focused on AI inference, sandboxes for agents, training and reinforcement learning, and batch jobs. The firm maintains its own container runtime, storage layer, and multi-cloud capacity pool spanning more than 20 providers. This stack enables automatic scaling for GPU and CPU resources across inference, training, and agent workloads.

Customers include companies in AI coding tools, video generation such as Runway, robotics, drug discovery, and enterprise deployments at firms like DoorDash. The platform supports multi-node training, Modal servers, and generally available VM sandboxes. With roughly 200 employees, the company plans to expand hiring in New York, San Francisco, and Stockholm.

Earlier rounds provide context for the current scale. The Series C in May 2026 raised $355 million at a $4.65 billion post-money valuation led by General Catalyst and Redpoint. The Series B in September 2025 raised $87 million at a $1.1 billion valuation. The progression from $60 million ARR in late 2025 to more than $1 billion ARR in October 2026 reflects sustained adoption across verticals.

Next Steps for Modal in RL, Inference, and Agent Infrastructure

Modal intends to extend capabilities in reinforcement learning and post-training workflows, inference features such as Endpoint Candidates, and additional sandbox and VM tooling aimed at agentic workloads. The company continues to add capacity across its provider network to meet rising compute demand from customers running large-scale token processing and concurrent agent sessions.

Developers and engineering teams evaluating serverless GPU platforms can now reference Modal’s documented performance at the $1 billion ARR level when comparing infrastructure options. The round supplies additional capital for product expansion and team growth while the valuation reflects investor confidence in the trajectory of AI infrastructure spend.