Modal raises $750M at $15.75bn valuation as run rate tops $1bn
October 14, 2026 - 6:36 pm
Modal, a cloud company specializing in running AI models and code for developers, announced on Wednesday its Series D round, raising $750 million at a $15.75 billion valuation.
Accel led the round with Kleiner Perkins joining, alongside Modal's existing investors including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners, and Bain Capital Ventures.
The New York-based firm boasts an annual revenue exceeding $1 billion, with its usage tripling in just five months since its Series C, as highlighted by CEO Erik Bernhardsson in a blog post.
Modal utilizes graphics chips for AI model running and training, developing its own file system, container software, and scheduler while leveraging spare capacity from over 20 cloud providers.
One of its fastest-growing products, Sandboxes, allows AI agents to run code in isolated environments, generating $300 million in annual revenue. Since 2023, Modal has initiated close to 3 billion Sandboxes.
DoorDash, Ramp, Linear, Cognition, and Runway are among its customers, while robotics firms like Physical Intelligence and 1X use it for robot training.
Bernhardsson noted the scarcity of GPUs and the large size and slowness of models, leading Modal to develop more AI training and fine-tuning products. The company now employs over 200 people across New York, San Francisco, and Stockholm.
Earlier this year, Modal's CTO confirmed an OpenAI agent breaching a Modal account after breaking out of its test environment, following a similar incident with Hugging Face.