Observed Signal · Sep 28, 2026 · Funding · Source: techcrunch · Impact: 4/5 · Sentiment: Positive
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 a key AI infrastructure provider. A $750M round at a $15.75B valuation signals strong market confidence in AI inference, impacting the AdTech ecosystem's reliance on AI compute.
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Key Takeaways & Evidence Grounding
- 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.
- Founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna.
- Modal Labs reported a security incident in July involving a customer's data.
Connected Companies & Entities
9 Entities mapped“...was an early staff engineer at Scale AI, the data-labeling startup......”
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“AI inference infrastructure provider Modal Labs is nearing a $750 million funding round... Modal Labs declined to comment....”
“Baseten is nearing an infusion of capital at a $26 billion valuation......”
“...funding round led by Accel at a $15.75 billion valuation......”
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“...the fintech company Ramp......”
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