Modal Labs announced a $750 million Series D round on October 14 2026 that values the company at $15.75 billion post-money. The round was led by Accel with Kleiner Perkins participating for the first time, while all prior backers increased their positions.
The company reported an annualized revenue run rate above $1 billion, up from roughly $300 million at its May 2026 Series C. Usage across its serverless AI compute platform tripled in the same period, and the overall business expanded more than 15 times year over year.
Modal Series D funding terms and investor participation
Existing investors Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures all joined the round. The post-money valuation more than tripled from the $4.65 billion level set six months earlier and rose sharply from the roughly $1.1 billion valuation of the September 2025 Series B.
Modal operates a serverless platform that runs inference, training and isolated sandboxes for AI agents on capacity leased from more than 20 cloud providers. The service has started nearly 3 billion sandboxes since its 2023 launch and routinely supports one million concurrent instances. Customers include DoorDash, Ramp, Linear, Cognition, Hebbia, Runway, Physical Intelligence and 1X, spanning autonomous agents, video generation, robotics and drug discovery.
One customer, TypeSafe AI, reported that its Jev agent processed one trillion tokens in the first three days after deployment on the platform. The company maintains offices in New York, San Francisco and Stockholm and employs more than 200 people.
Revenue growth, product roadmap and capacity outlook
Modal’s sandboxes product alone reached an approximate $300 million annualized run rate. CEO Erik Bernhardsson stated that demand shows no sign of slowing and that the new capital will fund multi-node training, reinforcement learning services and additional inference features. The platform layers custom runtime, storage, scheduler and networking on top of third-party GPU capacity to address scarcity and security requirements for large-model workloads.
Founders Erik Bernhardsson and Akshat Bubna established the company in 2021 to build infrastructure primitives that differ from traditional cloud offerings. The funding follows sustained growth in AI agent and post-training workloads that require secure, elastic code execution environments at scale.
Enterprises evaluating AI compute options can compare Modal’s pay-as-you-go sandbox model against dedicated GPU clusters by measuring token throughput and isolation guarantees. The company’s reported 15-fold year-over-year expansion provides a concrete benchmark for organizations planning infrastructure budgets through 2027.
Frequently asked questions
What is the valuation after Modal’s Series D round?
The October 2026 round closed at a $15.75 billion post-money valuation, more than three times the $4.65 billion figure from the prior Series C.
Which investors led Modal’s latest funding?
Accel led the $750 million round, with Kleiner Perkins joining as a new investor and all existing backers participating.
How fast has Modal’s revenue grown?
Annualized run rate exceeded $1 billion by October 2026, up from about $300 million at the May Series C and reflecting more than 15 times year-over-year growth.
What products does Modal offer to AI teams?
The platform supplies serverless inference, training and isolated sandboxes that support up to one million concurrent instances for agents, robotics and model fine-tuning.
By YasTech Editorial
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