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Modal raises $750 million at a $15.75 billion valuation

The AI cloud start-up says its annual revenue run rate has passed $1 billion, with nearly a third coming from sandboxes where AI agents run code.

By Alexandre S. , 06:30 UTC

Modal, which rents computing power to companies building AI products, raised $750 million on Wednesday 14 October 2026 in a round led by Accel, SiliconANGLE reports. The deal values the start-up at $15.75 billion. Its previous round, in May, valued it at less than a third of that.

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Usage has tripled in the five months since that round, chief executive Erik Bernhardsson writes on the company blog. Modal’s annualised revenue run rate, its current sales projected over a full year, has passed $1 billion. Customers he names include DoorDash, Ramp, Linear and the AI video company Runway.

Sandboxes bring in close to a third of the company’s revenue, SiliconANGLE adds. These are sealed-off computers in the cloud where AI agents can run the code they write without touching anything else. If one supplier goes down, customer jobs carry on elsewhere, because Modal spreads its hardware across more than 20 cloud providers. Modal plans to spend part of the new money on products for post-training, the stage that refines a model after its main training.

For teams building AI agents, this round shows how much investors now pay for the infrastructure that agents and models run on.

Sources

  1. SiliconANGLE: AI cloud startup Modal raises $750M at $15.75B valuation. Checked
  2. Modal: Modal crosses $1B in Annualized Run Rate and raises $750M Series D. Checked
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Alexandre S.

Alexandre S. is a creative ad strategist and copywriter with ten years' experience in digital marketing across multiple channels.

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