Modal Labs Inc. has secured $750 million in a Series D funding round led by Accel, with participation from Kleiner Perkins and existing investors. The company is now valued at $15.75 billion, marking a threefold increase since its previous round in May.
The company reports that its annualized revenue has surpassed $1 billion, tripling since May. Nearly one-third of this revenue is generated by Sandboxes, a cloud service for AI workloads that can provision tens of thousands of containers per second. In internal tests, the system supported 1 million concurrent containers.
Modal utilizes a custom scheduler to parallelize container provisioning across multiple servers. To minimize latency, the platform runs sidecar containers on the same physical hardware as the primary AI agents. Additionally, the Secret Injection feature allows agents to access credentials without exposing them.
The company provides infrastructure for AI training, enabling developers to deploy GPU clusters using simple scripts. These clusters utilize the RDMA protocol for high-speed data exchange. For inference, Modal offers the Endpoints service, which supports both custom deployments and a library of open-source algorithms.
Modal operates its services across hardware rented from more than 20 cloud providers to ensure redundancy. The newly raised capital will be directed toward product development, specifically targeting new services for reinforcement learning and post-training to enhance AI reasoning, safety, and cost-efficiency.
