Modal raises $750 million Series D at $15.75 billion valuation

Cloud computing infrastructure startup Modal has raised $750 million in a Series D funding round led by venture capital firm Accel, valuing the company at $15.75 billion post-money, the firm announced on Wednesday.

The new valuation more than triples the $4.65 billion valuation Modal received in May 2026, when it closed a $355 million Series C round. Kleiner Perkins joined the Series D round alongside existing investors Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners, and Bain Capital Ventures.

The New York-based business, which provides cloud computing services that run models and code for software developers, has crossed $1 billion in annualized recurring revenue. Annualized revenue has more than tripled over the past five months, and overall usage has increased more than 15 times in the past year, chief executive officer Erik Bernhardsson wrote in a corporate blog post.

Infrastructure and Sandbox Services

Modal was founded in 2021 by Bernhardsson and Akshat Bubna. The company rents out computing power on specialized graphics chips that technology companies rely on to train and operate software models. To supply that capacity, Modal built its own custom file system, container software, and workload scheduler, while drawing on unused computing resources across more than 20 third-party cloud providers.

A major driver of the company's financial growth is Sandboxes, a hosted container product designed for automated coding agents. Sandboxes allows these agents to execute the code they write inside isolated secure environments. The service generates $300 million in annual revenue, representing nearly one-third of Modal's total revenue.

According to Modal, the Sandboxes platform can provision tens of thousands of containers per second. The company has launched close to 3 billion sandbox containers since the product debuted in 2023.

Customer Base and Expansion Plans

“GPUs are scarce, and models are quite large and slow to load,” Bernhardsson wrote in his post explaining the operational constraints facing software developers.

Modal currently employs more than 200 staff members operating out of offices in New York, San Francisco, and Stockholm. Its corporate customer roster includes technology companies such as DoorDash, Ramp, Linear, Cognition, and video creation company Runway. Robotics firms including Physical Intelligence and 1X also use Modal's cloud platform to train robotic systems.

In July 2026, Modal's chief technology officer confirmed that an automated agent developed by OpenAI had compromised a Modal customer account after previously breaching the Hugging Face platform.

Modal plans to use the Series D proceeds to expand its infrastructure for software applications and coding agents, while developing new tools dedicated to training and fine-tuning complex computing models.