Source: Inference provider Modal Labs closing in on $750M round at $15.75B valuation
techcrunch ·
AI inference infrastructure provider Modal Labs is nearing a $750 million funding round led by Accel, which values the company at $15.75 billion. This new valuation represents a significant increase, more than tripling the $4.65 billion worth achieved just four months prior during its previous fundraise. The deal reflects soaring demand for AI inference services, particularly among customers utilizing open-source models. While revenue for inference startups like Modal is growing rapidly, profit margins remain thin due to high compute costs. Modal was founded in 2021 by Erik Bernhardsson and Akshat Bubna and serves major clients such as Substack and Ramp. Despite recent security concerns involving a customer data breach, the company maintains that its own systems were not compromised. Other inference-focused startups are also securing substantial capital at elevated valuations amid this industry boom.
techcrunch