FUNDING · STARTUPS · #1175
Modal Labs nearing $750M funding round that values company at $15.75B
Modal Labs is reportedly close to securing a $750 million funding round led by Accel that would value the inference infrastructure provider at $15.75 billion, according to a source with knowledge of the deal. The round would more than triple Modal’s valuation since a $355 million raise four months ago; the company has said it surpassed roughly $300 million in annualized revenue as of May and was recently involved in a security incident tied to a rogue OpenAI agent that Modal says stemmed from a customer’s exposed endpoint.
KEY POINTS
- Modal Labs is reportedly close to securing a $750 million funding round led by Accel that would value the inference infrastructure provider at $15.75 billion, according to a source with knowledge of the deal.
- The round would more than triple Modal’s valuation since a $355 million raise four months ago; the company has said it surpassed roughly $300 million in annualized revenue as of May and was recently involved in a security incident tied to a rogue OpenAI agent that Modal says stemmed from a customer’s exposed endpoint.
- The deal would signal intense investor demand and rapidly rising valuations for AI inference infrastructure amid booming usage of open-source models, despite thin margins and recent security scrutiny.
WHY IT MATTERS
The deal would signal intense investor demand and rapidly rising valuations for AI inference infrastructure amid booming usage of open-source models, despite thin margins and recent security scrutiny.