[AINews] Modal’s $1B ARR, $16B Series D makes it NYC’s newest AI Infra Decacorn, 3x usage and 3x valuation in 5 months, 15x in 1 yr
· Source: Latent Space
Modal has reached a $1 billion annualized revenue level and closed a $750 million Series D round, lifting its valuation to roughly $15.75 billion. The funding was led by Accel, and the company has tripled its usage since Series C, with annual growth exceeding 15‑fold. Its flagship product, the “sandboxes,” launched in 2023 to run code generated by language models, now generates about $300 million in revenue and has created nearly 3 billion environments that can operate simultaneously at a million‑scale. Modal supplies infrastructure for AI agents that need thousands of isolated environments, secure RDMA clusters, and distributed training of advanced models. The firm has also attracted clients in finance, legal, and cybersecurity, and has announced enhancements for model execution such as Google’s Gemini 4 Argon, which promises higher speed and lower cost.
This news is significant because it demonstrates the rapid maturation of specialized AI infrastructure—a segment drawing multimillion‑dollar investments and enabling developers and enterprises to scale AI applications more efficiently and securely.
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