Modal Labs is nearing a $750 million financing led by Accel at a $15.75 billion post-money valuation, according to a source cited by TechCrunch. If completed on those terms, the deal would more than triple the AI infrastructure startup’s $4.65 billion valuation from four months earlier.
Modal lets developers train models and run compute-heavy workloads without managing servers. It told Reuters that annualized revenue had passed $300 million by May, and its listed customers include Cognition, Suno, Ramp and Substack. The company was founded in 2021 and is estimated to employ about 150 people.
Investor demand reflects rapid growth in inference—the process of running trained models—especially for open models. Yet providers must buy or lease expensive computing capacity, which can keep margins thin even as revenue rises. The transaction is still described as being negotiated, so its size and valuation are not final. A large round would finance expansion, but it would also raise expectations that revenue growth can eventually support the infrastructure bill.