Modal Labs raises $355 million in Series C funding, tripling its valuation to $4.65 billion amid surging AI coding demand.
AI infrastructure startup Modal Labs raised $355 million in a Series C funding round, lifting its valuation to $4.65 billion. The company provides cloud-based access to computing chips for AI tools and a sandbox for testing AI-generated code.
The new valuation marks a sharp increase from $1.1 billion in the fall, driven by a revenue surge. Modal’s annualized revenue reached $300 million, up from $60 million in September, as demand for AI coding accelerates. The round was led by Redpoint Ventures and General Catalyst.
Modal’s growth reflects broader trends in AI adoption, though rising costs and scarcity of computational resources remain challenges. The company now partners with 13 cloud providers to meet demand.