How much did Modal raise in its Series D?

Modal, a cloud company that runs AI models and code for developers, said Wednesday it has raised $750 million in a Series D round at a $15.75 billion valuation. The New York-based company also said it now brings in more than $1 billion in revenue a year.

Who led Modal's funding round?

Accel led the round, and Kleiner Perkins joined. All of Modal’s existing investors also took part, including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners, and Bain Capital Ventures.

The growth numbers are the centerpiece of the announcement. Co-founder and chief executive Erik Bernhardsson wrote in a blog post that usage has tripled in the five months since the company’s Series C. The business has grown more than 15 times in a year, he said.

What does Modal sell to AI companies?

Modal rents out computing power on graphics chips, which AI companies use to run and train their models. Demand for that hardware is the core problem the company is selling into. “GPUs are scarce, and models are quite large and slow to load,” Bernhardsson wrote.

To get around those limits, Modal says it built its own file system, container software, and scheduler. It also draws on spare capacity from more than 20 cloud providers.

Sandboxes, one of its fastest-growing products, lets AI agents run the code they write in isolated environments. The company said Sandboxes alone now bring in $300 million a year, and that it has started close to 3 billion of them since 2023.

Customers include DoorDash, Ramp, Linear, Cognition, and video AI firm Runway, according to Modal. Robotics companies such as Physical Intelligence and 1X use the platform to train robots.

Modal plans to launch more products for training and fine-tuning AI models. It has more than 200 staff across New York, San Francisco, and Stockholm.

The company has also dealt with a security incident. 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.

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