Modal Raises $750 Million at $15.75 Billion Valuation as Run Rate Passes $1 Billion
· TexaHub · AI in Industry, Technology Trends
The AI infrastructure startup's Series D was led by Accel, more than tripling its valuation in five months.
The Round
Modal announced a $750 million Series D at a $15.75 billion valuation on 14 October. Accel led and Kleiner Perkins joined, alongside existing backers including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures [1]. The valuation compares with $4.65 billion in May, when Modal raised $355 million [1][2].
CEO Erik Bernhardsson said usage has tripled since the Series C and grown more than 15x year on year, and the company has passed $1 billion in annualized run rate [2].
What Modal Sells
Modal rents GPU capacity for training and running AI models, using its own file system, container software and scheduler and drawing on spare capacity from more than 20 cloud providers [1]. Its Sandboxes product, which lets AI agents run generated code in isolated environments, brings in about $300 million a year [1].
Customers named include DoorDash, Ramp, Linear, Cognition and Runway, while robotics firms Physical Intelligence and 1X use it for training [1]. Bernhardsson said "GPUs are scarce, and models are quite large and slow to load" [1].
Sources
[1] Modal Raises $750M at $15.75bn Valuation as Run Rate Tops $1bn — The Next Web, 14 Oct 2026
[2] Modal Triples Valuation as AI Infrastructure Demand Explodes — PYMNTS, 14 Oct 2026