Modal Labs in talks to raise funds at $2.5B valuation

Business Feb 12, 2026

Modal Labs, the AI cloud platform, is in early talks to raise fresh funds that could push its value to $2.5 billion—more than double its $1.1 billion valuation from September 2025.
General Catalyst is in talks to lead the round.

The company is building an AI cloud platform

Started in 2021, Modal Labs makes life easier for developers working on AI by pooling GPUs and CPUs from around the world for super-fast training and processing.
Their platform uses programmable building blocks so devs can skip complicated setups and just get coding.

Co-founders and funding history

Modal Labs was co-founded by Erik Bernhardsson (ex-Spotify data leader and Better.com CTO) and Akshat Bubna (CTO).
The company has raised $111 million so far and is already hitting a $50 million annual revenue run rate.