Modal Labs scores $355M Series C, jumps to $4.65B valuation

Modal Labs, an AI infrastructure startup focused on high-performance, serverless compute for AI workloads, has raised $355 million in a Series C funding round. The round sets the company’s valuation at $4.65 billion, a sharp increase from roughly $1.1 billion less than a year earlier, underscoring rapid revenue growth and surging demand for AI-native cloud infrastructure. The financing was co-led by Redpoint Ventures and General Catalyst, with participation from existing backers including Accel and Menlo Ventures, and in some accounts additional involvement from Bain Capital Ventures. The company, founded by Erik Bernhardsson and Akshat Bubna and headquartered in New York, is building serverless infrastructure optimized for AI applications such as low-latency inference and reinforcement learning workloads.

Reports note that the $355 million raise was structured in two tranches at different valuations, with early investors coming in around a $2.5 billion valuation and subsequent demand pushing the final round price up to $4.65 billion. Modal Labs plans to use the capital to scale its GPU infrastructure, expand its AI development and testing platform, and grow engineering teams across New York, San Francisco, and Stockholm to support global customer demand. The size of the round and the step-up in valuation highlight investor conviction in specialized AI infrastructure as enterprises race to secure reliable, high-performance compute for training and deploying AI models at scale.