Modal Labs Preparing for Funding Round at $15.75 Billion Valuation

AI inference infrastructure provider Modal Labs is working to finalize a new $750 million funding round led by Accel. With this deal, the company's valuation reaches $15.75 billion.

Details of the Funding Round

Modal Labs has reached the final stages of completing a $750 million funding round led by Accel.

This new financing round triples the $4.65 billion valuation the company achieved in its previous $355 million round announced just four months ago.

Growing Demand in the AI Sector

This agreement comes amidst intense demand for AI inference services, particularly from customers relying on open-source models.

Other inference startups in the sector are also holding talks with investors to raise fresh capital at much higher valuations.

Company Founding and Structure

Modal Labs was founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna, with headquarters in New York.

With approximately 150 employees, the company provides infrastructure that allows developers to train AI models and run intensive workloads without managing their own servers.

Security Incident and Current Status

The investment talks take place two months after Modal Labs was involved in a notable security incident within the AI sector.

Company executives had stated that the data breach originated not from their own systems, but from a vulnerability in a customer's code.