Modal Labs Reportedly Nears $750 Million Accel-Led Round at $15.75 Billion Valuation

Modal Labs may be about to put a much higher price on its AI computing business. The company is nearing a $750 million financing led by Accel at a $15.75 billion valuation including the investment, TechCrunch reported, citing a person with knowledge of the funding. Modal declined to comment. The round has not closed.

Accel’s move from participant to prospective lead

In May, Modal announced a $355 million financing led by General Catalyst and Redpoint. Accel joined as a new investor. Four months later, it is reportedly set to lead the next round. That would give an investor from the last financing a larger role in setting Modal’s new price.

The proposed valuation is more than three times the $4.65 billion post-investment price Modal announced in May. The comparison shows how sharply the company could be repriced in a short span, rather than measuring a corresponding change in its revenue or profit.

More than a business serving model answers

Modal lets developers run AI models and other computing-heavy work without managing servers themselves. That includes inference: using an already-trained model to produce an answer. It is a service customers need whenever their applications call on those models, not just while the models are being trained.

The company describes a broader platform that also handles training-related workloads, large batches of jobs and sandboxes: isolated spaces where AI agents can run code. Modal said in May that sandboxes generated more than a third of its revenue. The new price would therefore apply to a computing business that extends beyond inference.

Modal also said its annualized revenue had surpassed $300 million by May, after growing fivefold since the previous September. Annualized revenue expresses the pace of sales as a yearly figure; it is not sales recorded over a completed year. The figure helps explain the interest in Modal, but it says nothing about profit.

The price of supplying computing power

Buying or leasing the capacity to serve AI workloads is expensive. TechCrunch describes thin margins among inference providers despite rapid revenue growth. That is an industry-level warning, not a disclosed margin for Modal. It makes the cost of delivering all that usage an important part of assessing the proposed valuation.

Modal says it built its own storage and computing layer and pools capacity across data centers to improve speed and scale. Those design claims do not show whether the approach offsets its computing costs. For now, the next concrete test is whether the reported financing closes at the proposed price.