Artificial intelligence (AI) infrastructure startup Modal was valued at $15.75 billion in a Series D funding spherical wherein it raised $750 million, CEO Erik Bernhardsson mentioned in a Wednesday (Oct. 14) weblog submit.
Modal’s new valuation is greater than triple the $4.65 billion valuation the corporate achieved in a May Series C spherical wherein is raised $355 million.
“Just five months ago, when we announced our Series C, I wrote that demand was accelerating,” Bernhardsson mentioned within the Wednesday submit. “Since then, usage has tripled and we’ve grown more than 15x year-over-year. We recently crossed $1B in annualized run rate with no sign of slowing down.”
Modal gives a platform for manufacturing AI, with cloud infrastructure for groups that develop, practice and serve AI functions at scale. The firm’s choices span inference, coaching, sandboxes and features, in accordance to its web site.
Companies use the Modal platform to get apps from experimentation to manufacturing, to construct brokers, to generate lifelike video, to practice robots and to run drug discovery, in accordance to the submit.
We’d love to be your most well-liked supply for information.
Please add us to your most well-liked sources checklist so our information, knowledge and interviews present up in your feed. Thanks!
“A new world of software capabilities requires a new set of building blocks and we’re just getting started,” Bernhardsson mentioned within the submit.
With the brand new capital, Modal will “keep building what’s next,” Bernhardsson mentioned.
Modal’s newest funding spherical was led by Accel, per the submit.
Accel mentioned in a Wednesday weblog submit that the infrastructure to practice, serve and run AI is the quickest rising market in know-how. Plus, the business is barely within the very early levels of constructing that infrastructure, per the submit.
“As the market evolves from ‘AI-natives’ to every company using AI tools, Modal provides the building blocks for the smallest startups to the largest companies in the world,” Accel’s Rich Wong and Gonzalo Mocorrea mentioned within the submit.
PYMNTS reported in September 2025 that inference infrastructure is the subsequent large layer within the generative AI tech stack as a result of latency, price, scale, power use and deployment location all decide whether or not an AI service works or fails.
The report mentioned that traders have been already rewarding companies that seize inference demand, and that enterprises deploying generative AI options face inference prices that may attain a whole bunch of hundreds of thousands yearly.
