Modal, a cloud infrastructure provider for AI agents, plans to integrate Nvidia Vera CPUs into its server fleet. Internal testing by the company demonstrated that the Arm-based Vera processors deliver twice the throughput compared to existing AMD and Intel x86 chips currently used in its data centers.
The transition requires significant software modifications due to the shift from x86 to the Arm instruction set architecture. Despite the engineering effort, Modal intends to maintain a heterogeneous server environment, selecting processors based on specific workload requirements while continuing to evaluate future generations of AMD and Intel hardware.
Nvidia aims to capture a significant share of the server market with the Vera CPU. The company projects Vera sales to reach at least $20 billion in the current fiscal year, with a goal of selling at least four million units in fiscal 2026. Nvidia estimates the total addressable market for these processors at approximately $200 billion.
The announcement follows a $750 million funding round for Modal, led by Accel, which valued the startup at $15.75 billion. The company reports that its service consumption has tripled over the last 12 months, with annual revenue increasing more than 15 times compared to the previous year and a target to reach $1 billion in annual revenue within the next year.
