Modal Labs is in talks to raise new capital at a $15B valuation, Bloomberg reported, four months after the AI infrastructure company closed $355M at $4.65B.
That would nearly triple its mark. Modal raised at $1.1B in autumn 2025, then at $4.65B in May, with General Catalyst and Redpoint Ventures leading and Accel, Menlo Ventures and Bain Capital Ventures joining. Total funding sits near $465M.
Founder Erik Bernhardsson spent 15 years on recommendation systems at Spotify and led engineering at Better.com before starting Modal in January 2021 with Akshat Bubna, who had been chief technology officer at Better.com and worked at Scale AI. Rather than lean on AWS or Azure, Modal built its own file system, container runtime and scheduler so customers can reach GPUs in under a second, billing by the second for GPU and CPU time.
Demand is following inference and coding agents. Modal’s Sandboxes product lets coding agents write, run and test code in isolated environments before release, and annualised revenue reached $300M by April, up from about $119M at the end of 2025.
Competition is crowded and also repricing. Baseten is reportedly discussing a round that could lift it from $13B to $26B, Together AI raised $800M in July at $8.3B, and Fireworks AI is valued at $4B. Modal’s pitch is developer experience rather than raw capacity, though constrained GPU supply could squeeze margins if capacity catches up with demand.
