Modal Labs has raised $355 million in a Series C funding round that values the company at $4.65 billion, according to Reuters. The funding round was led by Redpoint Ventures and General Catalyst, with participation from Accel and Menlo Ventures, according to Reuters.
The company provides infrastructure that helps AI companies access computing chips needed to run AI inference workloads. Modal Labs also offers a sandbox product that enables developers to test AI-generated code before deploying it into production systems.
The valuation marks a sharp increase from the company’s $1.1 billion valuation in the fall of 2025. Reuters reported that Modal Labs’ annualized revenue increased from about $60 million in September to approximately $300 million as AI-generated coding tools drove a surge in demand for infrastructure services.
Modal Labs CEO Erik Bernhardsson said the growth has been fueled by the rise of AI-assisted coding, with customers including biotech companies, hedge funds, and weather-forecasting firms. The company also expanded its cloud infrastructure partnerships from five providers last year to 13 providers as demand for compute resources intensified.
Reuters reported that the Series C financing was completed in two tranches. The first tranche was completed at a $2.5 billion valuation before additional investor demand pushed the second tranche to the final $4.65 billion valuation.
