Modal Raises $750M for AI Infrastructure

Modal has raised $750 million at a $15.75 billion post-money valuation as demand accelerates for infrastructure designed specifically around AI workloads and coding agents.

What happened

The Series D was led by Accel with participation from Kleiner Perkins and existing investors including Menlo Ventures, General Catalyst, Lux Capital, Redpoint Ventures and Bain Capital Ventures. Modal provides cloud infrastructure for AI inference, training and isolated execution environments. Developers can run GPU workloads and coding agents without managing the underlying servers directly. The company reports more than $1 billion in annualized run rate, usage tripling since its Series C five months earlier and its Sandboxes product reaching a $300 million annualized run rate. Those are company-reported run-rate metrics rather than independently audited annual revenue.

Why it matters

AI applications increasingly need more than raw compute. They require scheduling, secure sandboxes, model serving and access to capacity across different cloud providers. Modal is positioning itself as the software layer that hides this operational complexity and gives developers a consistent environment for AI workloads.

The bigger picture

The round highlights the value accruing to infrastructure businesses between model providers and end-user applications. Modal's long-term position will depend on developer retention, unit economics and whether its abstraction layer remains valuable as hyperscalers improve their own AI-native tooling.