Modal vs Nscale

Modal Hits $1B ARR, Raises $750M Series D at $15.75B Valuation

Modal, an AI infrastructure startup, announced it has crossed $1 billion in annualized run rate and raised a $750 million Series D round at a $15.75 billion valuation, led by Accel. The company's usage has tripled since its Series C and grown more than 15x year-over-year. Modal's Sandboxes product, launched in 2023 in response to developers using LLMs to generate code, has become a $300 million run rate product on its own, with nearly 3 billion sandboxes spun up and scaling to a million concurrent. The funding round marks Modal's transition from an infra unicorn to an infra decacorn, positioning it as a key player in the AI infrastructure space.

• Modal raised a $750M Series D at a $15.75B valuation, led by Accel.
• Modal crossed $1B in annualized run rate.
• Usage has tripled since Series C and grown over 15x year-over-year.

Runtime recap: the full keynote, VM Sandboxes, Modal Clusters, and more.

Modal announces a runtime product update with VM Sandboxes and Modal Clusters, as highlighted in a blog post.

Modal Labs closing in on $750M round at $15.75B valuation

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. This would more than triple its valuation from $4.65 billion in May. The round comes amid surging demand for inference services, with other startups like Baseten, Fireworks, and Fal also raising at higher valuations. Modal Labs, founded in 2021 by Erik Bernhardsson and Akshat Bubna, provides infrastructure for training and running AI models without managing servers. The company has surpassed $300 million in annualized revenue as of May. The funding talks follow a security incident in July where a customer's data was compromised, but Modal's platform was not breached.

• Modal Labs is nearing a $750 million funding round led by Accel at a $15.75 billion valuation.
• The round would more than triple Modal Labs' valuation from $4.65 billion in May.
• Modal Labs has surpassed $300 million in annualized revenue as of May.

Nscale Dedicated Inference on reserved GPUs for scalable AI

AI teams keep control of the application and compute while Nscale takes care of the serving layer.

Nscale Joins the PyTorch Foundation as a Platinum Member

Nscale has joined the PyTorch Foundation as a Platinum Member, announced on October 20, 2026.

Nscale, Anthropic in talks for another $45B compute deal

Anthropic and AI infrastructure provider Nscale are reportedly in advanced talks for another $45 billion compute deal, according to Bloomberg and TechCrunch. This follows a similar $45 billion agreement announced just over a month ago. The deal is not yet finalized, with sources cautioning that details could change. If completed, it would be the latest in a series of massive compute agreements Anthropic has made over the past year, totaling over $517 billion in the last 11 months. Both companies are also pursuing IPOs; Anthropic is expected to go public this year, while Nscale faces investor pushback over its proposed $30 billion valuation. The scale of these investments has raised concerns among some investors about the returns on AI infrastructure spending.

• Anthropic and Nscale are in talks for a new $45 billion compute deal, following a similar deal announced just over a month ago.
• The deal is not finalized and details could change.
• Anthropic has signed over $517 billion in compute deals over the past 11 months.