AI inference infrastructure provider Modal Labs is nearing a $750 million funding round led by Accel at a $15.75 billion valuation, according to a source with knowledge of the deal.
Modal Labs nearing $750M funding round at $15.75B valuation
This new funding round would more than triple the company's valuation from the $4.65 billion it reached following a $355 million fundraise just four months ago. While the exact size of the round has not been officially reported, other inference startups are also seeking significant capital at increasing valuations. For instance, Bloomberg reported that Baseten is nearing a capital infusion at a $26 billion valuation.
Modal Labs, based in New York, provides developers with infrastructure to train AI models and run compute-heavy workloads without managing their own servers. The company's customer list includes Cognition, Suno, Ramp, and Substack. As of May, Modal reported that its annualized revenue had surpassed $300 million.
The surge in fundraising comes amid soaring demand for inference services—the process of running a trained AI model to generate outputs—particularly for customers utilizing open-source models. Despite rapid revenue growth, companies in the inference sector face thin margins due to the high costs of acquiring or leasing compute resources.
Sources
- Source: Inference provider Modal Labs closing in on $750M round at $15.75B valuation （TechCrunch AI, 2026-09-28）