Modal Labs raises $355 million at $4.65B valuation for AI compute
Modal Labs, the AI startup behind compute for inference and a sandbox for testing code, just scored $355 million in fresh funding, pushing its value to a massive $4.65 billion.
The round was led by Redpoint Ventures and General Catalyst, who also grabbed a seat on the board.
CEO Erik Bernhardsson credits the big investment to "Coding for the last six months has been driving everything," as more companies look for smarter tech.
Modal's revenue up fivefold to $300 million
Modal's revenue has jumped roughly fivefold from September, now hitting $300 million a year thanks to biotech firms, hedge funds, and weather forecasters using their AI-created code.
To keep up with everyone wanting more computing power for AI projects (and with cloud shortages), Modal expanded from five cloud partners last year to 13 today, showing investors really believe they're solving some of tech's biggest headaches right now.