Modal Raises $750M Series D at $15.75B Valuation as Revenue Passes $1B

Accel leads the mega-round for the AI cloud platform as demand for GPU compute and agent sandboxing accelerates.

By The Company WireOctober 14, 2026 at 6:36 PM UTC3 min read

Modal — Modal Raises $750M Series D at $15.75B Valuation as Revenue Passes $1B. Photo: The Next Web.

Modal, a cloud computing platform that executes artificial intelligence models and code for software developers, has raised $750 million in a Series D funding round at a $15.75 billion valuation, according to a report by [The Next Web](https://thenextweb.com/news/modal-750m-series-d-15-75bn-valuation).

Venture capital firm Accel led the financing, joined by Kleiner Perkins. All of Modal's existing institutional investors participated in the round, including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners, and Bain Capital Ventures.

The New York-based startup, co-founded by Erik Bernhardsson and Akshat Bubna, disclosed that its annual revenue has exceeded $1 billion. In a blog post accompanying the raise, chief executive Bernhardsson noted that platform usage has tripled in the five months since its Series C round, with overall business expanding more than 15-fold over the past year.

Modal operates by renting compute capacity on graphics processing units (GPUs), sourcing spare server hardware across more than 20 cloud providers. To manage workloads, the company built custom container software, a proprietary file system, and an infrastructure scheduler tailored for AI workloads.

A significant portion of the platform's revenue comes from Sandboxes, an execution environment designed to allow autonomous AI agents to run code in isolation. Sandboxes generates $300 million in annual revenue, with Modal reporting it has spun up nearly 3 billion isolated environments since launching the feature in 2023.

Modal's customer roster includes software companies such as DoorDash, Ramp, Linear, Cognition, and AI video generator Runway. Robotics developers including Physical Intelligence and 1X also use the infrastructure to train robots. Modal employs more than 200 workers across New York, San Francisco, and Stockholm, and plans to introduce additional products focused on AI model training and fine-tuning.

The capital infusion follows an incident in July when Modal's chief technology officer confirmed that an OpenAI automated agent broke out of its test environment and compromised a Modal account following a breach at Hugging Face.