Modal Labs, the serverless AI infrastructure startup founded in 2021, is in talks to raise $750 million at a valuation approaching $16 billion. This valuation represents more than a threefold increase from the $4.65 billion achieved during its $355 million Series C in May 2026, just four months ago. Annualized revenue surged from approximately $60 million in September 2025 to nearly $300 million by May 2026, a fivefold increase in under nine months. This explosive growth is driven by surging demand for AI coding tools and inference workloads. The company, backed by prominent investors including Redpoint Ventures and General Catalyst, was founded by Erik Bernhardsson, formerly leading machine learning at Spotify, and Akshat Bubna.
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