Modal Labs in talks to raise funding at valuation near $15 billion, report says

From $1.1 billion to talks near $15 billion

Modal's climb has been steep. Its $87 million Series B in September 2025 valued the company at $1.1 billion, and it then raised a $355 million Series C at a $4.65 billion post-money valuation, which the report says closed in May 2026.

A valuation approaching $15 billion would be more than triple that Series C mark (the report says the figure has more than tripled in roughly four months). The earlier rounds were far smaller: a $7 million seed in early 2022 and a $16 million Series A in October 2023.

Co-founders Erik Bernhardsson and Akshat Bubna have drawn backing from firms including Redpoint Ventures and General Catalyst. Bernhardsson previously led the machine learning team at Spotify.

Revenue is doing the heavy lifting

The story here is revenue. Modal's annualized revenue grew from about $60 million in September 2025 to nearly $300 million by May 2026, according to the report, and that growth was driven mainly by demand for AI coding tools and inference workloads.

The platform lets developers run Python functions and AI workloads on GPUs and CPUs across more than 13 cloud providers without managing infrastructure. It's serverless, so developers pay for compute only while their code runs instead of reserving capacity around the clock. Modal says it's launched more than 1 billion sandbox environments to date.

That's a lot of sandboxes.

A crowded market for AI infrastructure

Modal isn't alone in this lane. Competitor Baseten has reached a valuation of approximately $26 billion, per the same report, which describes it as another provider of infrastructure for deploying and scaling machine learning models.

That's the latest figure in the report, and it puts Modal's talks in context: even at a valuation approaching $15 billion, Modal would still sit well below its rival. The company is still in talks, so the size, terms and final valuation of any round aren't confirmed yet.