AI inference infrastructure provider Modal Labs is reportedly nearing a $750 million funding round, which would be led by Accel. This investment is expected to value the company at $15.75 billion, according to a source familiar with the funding.
The anticipated round would more than triple Modal Labs' valuation from $4.65 billion, a figure reached just four months ago following a $355 million fundraise. The company, founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna, enables developers to train AI models and manage other compute-intensive tasks without maintaining their own servers.
Modal Labs' customers include coding startup Cognition, AI music generator Suno, fintech company Ramp, and publishing platform Substack. As of May, the company had surpassed $300 million in annualized revenue.
The funding discussions follow a security incident in late July where a customer's data was compromised. Modal Labs stated that the breach was due to a flaw in the customer's own code, not its systems, with CTO Akshat Bubna clarifying that an unauthenticated endpoint allowed code execution in their sandboxes.