Modal has crossed $1 billion in annualized run rate. On October 14, 2026, the AI infrastructure company announced on its official blog that it has raised a $750 million Series D at a $15.75 billion post-money valuation, led by Accel, with Kleiner Perkins joining and all existing investors, including Menlo Ventures and General Catalyst, participating. Five months earlier, its Series C valued it at $4.65 billion; TechCrunch reported the talks at these same terms in late September, and the round has now closed as reported.
One product, Sandboxes, is a $300 million business on its own
Modal sells compute that spares developers from running their own servers: you write the code, it runs it on GPUs. The company says usage has tripled since the Series C and grown more than 15x year over year. Sandboxes, the isolated environments that run code written by large models, now account for roughly $300 million of run rate alone, with close to 3 billion sandboxes spun up and capacity to scale to a million concurrent. The customer list shows what runs on it: DoorDash moves AI experiments into production on Modal, Cognition, Ramp, Linear and Hebbia run background agents, Runway generates video, Physical Intelligence and 1X train robots, and drug-discovery firm Chai Discovery computes there too; one new product processed 1 trillion tokens on Modal in its first three days. Underneath, Modal rebuilt its file system, container runtime, scheduler and networking, on a capacity pool spanning more than 20 clouds. Recent launches include multi-node training clusters, virtual machines, HTTP servers and inference endpoint features, with reinforcement-learning and post-training products promised next.
The $15.75 billion price buys growth, not yet margins
The reference point is the whole inference-infrastructure race: Fireworks said in July that its annualized revenue had reached $1 billion, and Baseten has been reported to be raising at a valuation near $26 billion. Demand is real, but the sector's shared weakness keeps coming up: compute is bought or leased at high cost, margins stay thin, and the faster revenue grows, the faster cash can burn. One caveat on the headline number: $1 billion is Modal's own annualized run rate, not audited revenue, and the company employs just over 200 people across New York, San Francisco and Stockholm. A valuation that more than triples in five months prices in the expectation that AI applications will all have to run on someone's cloud. What to watch next is whether run rate converts into retained revenue, and who ultimately pays the compute bill behind a million concurrent sandboxes.
