Modal Labs nears $750M funding round at $16B valuation

Modal Labs, the serverless AI infrastructure company founded in 2021, is in talks to raise new funding at a valuation approaching $15 billion. That would represent more than a threefold jump from the $4.65 billion post-money valuation the company commanded after closing its $355 million Series C just four months ago in May 2026. Revenue growth that explains the hype Modal’s annualized revenue surged from approximately $60 million in September 2025 to nearly $300 million by May 2026. That’s roughly a fivefold increase in under nine months. The growth has been driven primarily by surging demand for AI coding tools and inference workloads, the computational tasks required to actually run trained AI models in production. Modal’s platform handles the essential plumbing: it lets developers run Python functions and AI workloads on GPUs and CPUs across more than 13 cloud providers without having to manage the underlying infrastructure themselves. The company says it has launched more than 1 billion sandbox environments to date. From seed round to potential decacorn Modal raised $7 million in seed funding in early 2022, followed by a $16 million Series A in October 2023. Its $87 million Ser...