Modal, a New York company that runs cloud infrastructure for AI workloads, said on 14 October 2026 that it had raised a $750m Series D at a $15.75bn post-money valuation.
Accel led the round. Kleiner Perkins joined as a new investor, and the company said all of its existing investors took part, including Menlo Ventures, General Catalyst, Redpoint Ventures, Lux Capital, Amplify Partners and Bain Capital Ventures.
The round came about five months after Modal's Series C. In a blog post, co-founder and chief executive Erik Bernhardsson wrote that usage had tripled since then, that the company had grown more than 15 times year on year, and that it had recently passed $1bn in annualised run rate.
“We recently crossed $1B in annualized run rate with no sign of slowing down.”Erik Bernhardsson, co-founder and CEO, Modal
What Modal does
Modal lets developers run compute-heavy code, such as model inference, training and batch jobs, without managing servers or reserving capacity. Bernhardsson wrote that the company replaced most of the standard cloud stack with its own file system, container runtime, scheduler and networking, running on a pool of capacity that now spans more than 20 clouds.
Its products include serverless functions, used for tasks such as diffusion models and LLM inference, and multi-node training clusters that customers can start without a capacity commitment. Sandboxes, isolated environments for code written by AI agents and for reinforcement learning rollouts, launched in 2023. According to Modal, Sandboxes is now a $300m run-rate business on its own; the company says it has started close to 3bn sandboxes and can run a million at once. Virtual machines inside Sandboxes are now generally available, and Modal says it is working on reinforcement learning and post-training products.
Customers named in the post include DoorDash, Cognition, Ramp, Linear, Hebbia, Runway, Physical Intelligence, Suno and Chai Discovery.
A fast climb in valuation
Modal's price has risen quickly. According to Pulse 2, its Series C, reported in May 2026, raised $355m at a $4.65bn valuation in a round led by General Catalyst and Redpoint Ventures, with Accel and Menlo Ventures also investing. The same report said the company had been valued at $1.1bn in autumn 2025. Runtime Wire noted that the new valuation is more than three times the May figure.
The company did not say how much each investor contributed, and it has not published profit figures. The run-rate numbers come from Modal itself.
What the money is for
Modal did not give a detailed breakdown of how it will spend the money, saying only that it raised the round to keep building new products. Bernhardsson wrote that the company was started five years ago and that the software people build in two years' time will need new kinds of building blocks, much of which Modal wants to provide.
The company says it has a team of more than 200 people across New York, San Francisco and Stockholm. Law firm Pillsbury, which advised Modal on the financing, describes it as based in New York City.
Demand for AI compute
Bernhardsson tied much of the demand to AI agents. Modal launched Sandboxes after noticing that people were using LLMs to generate code, and the post lists background agents, reinforcement learning and so-called vibecoding platforms among its main uses. Other customers use Modal for video and music generation, robot training, drug discovery and LLM inference, according to the company.
Company website: modal.com