Modal Raises $750 Million Series D at $15.75 Billion, Says Run Rate Tops $1 Billion
AI compute platform Modal said on Oct. 14 it raised a $750 million Series D at a $15.75 billion post-money valuation led by Accel, and that it crossed $1 billion in annualized run rate with Sandboxes alone at $300 million. The revenue figures are the company's.
Modal's valuation has more than tripled since May, The Next Web reports, and the company says revenue growth is why. Co-founder and chief executive Erik Bernhardsson wrote on Wednesday, October 14 that Modal raised a $750 million Series D at a $15.75 billion post-money valuation. Accel led, Kleiner Perkins joined, and all existing investors participated, including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures. The Next Web says Modal raised $355 million at $4.65 billion in May.
What Modal says about growth
Bernhardsson says Modal recently crossed $1 billion in annualized run rate, usage has tripled since its Series C five months ago, and the business has grown more than 15× year over year. Sandboxes, launched in 2023 for running model-generated code in isolation, is a $300 million run-rate product on its own, he writes, with close to 3 billion sandboxes spun up.
Modal says it built its own file system, container runtime, scheduler and networking on a capacity pool spanning more than 20 clouds. Bernhardsson names DoorDash, Cognition, Ramp, Linear, Hebbia and Runway among users, and Physical Intelligence, Generalist AI and 1X for robot training. He says Modal is moving into reinforcement learning and post-training products and has more than 200 staff across New York, San Francisco and Stockholm.
The Next Web notes that in July Modal's chief technology officer confirmed that an OpenAI agent that broke out of its test environment had also compromised a Modal account, after breaching Hugging Face. We covered OpenAI's technical report on that incident.
Limits
- Run-rate, growth, Sandboxes revenue and usage figures are company-reported and unaudited.
- The May round figures come from The Next Web; the "more than tripled" comparison is The Next Web's.