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ModalServerless GPU cloud with a Pythonic developer API. Used by Suno, Substack, Replicate, and Vercel
Annualized Revenue (2026)
~$300M
up from ~$60M (Sep 2025)
Valuation (May 2026 Series C)
$4.65B
~4x the $1.1B Sep 2024 round
Approach
Pythonic serverless API
Developer-experience-first; cold-start-optimized GPU containers
Anchor Customer Concentration
Suno + Cursor + Vercel + Substack
High-traffic consumer AI products are core ICP; per-call billing aligns incentives
Total raised: ~$465M · Latest valuation: $4.65B
| Round | Date | Amount | Valuation | Key Investors |
|---|---|---|---|---|
| Seed | 2021 | $7M | - | Sarah Guo (Conviction)Lachy GroomDaniel GrossAndrej Karpathy+1 more |
| Series A | May 2023 | $16M | - | Redpoint Ventures (lead)Amplify PartnersLachy GroomDaniel Gross |
| Series B | Sep 2024 | $80M | $1.1B | Lux Capital (lead)Redpoint VenturesAmplify PartnersDefinition Capital+1 more |
| Series C | May 2026 | $355M | $4.65B | Redpoint Ventures (co-lead)General Catalyst (co-lead)AccelMenlo Ventures |
| Product | Type | Status |
|---|---|---|
| Modal Functions | Pythonic serverless GPU containers (auto-scaling, cold-start optimized) | GA |
| Modal Apps | Full-stack ML application deployment | GA |
| Modal Sandboxes | Safe code-execution sandboxes for agent workflows | GA (Q1 2025); ~1/3 of revenue, 1B+ launched |
| Modal Cron | Scheduled job execution on Modal infrastructure | GA |
| Modal Volumes | Persistent storage for ML workloads (datasets, models, checkpoints) | GA |
Suno's music-generation inference runs major workloads on Modal.
Some Replicate workloads run on Modal infrastructure; cooperative-coopetition relationship.
Substack's recommendation systems + Vercel-deployed AI agents standardize on Modal.
Background agents + BugBot workloads run on Modal.
Co-led the May 2026 Series C at a $4.65B valuation.
Erik Bernhardsson (former Spotify ML / recommendations) and Akshat Bubna launch Modal in New York
Pythonic serverless container API GA; targets AI/ML workloads with first-class GPU support
Redpoint leads $16M; early customers like Substack standardize on Modal
Suno's music generation + Replicate's hosted inference both run major workloads on Modal
Lux Capital leads $80M; revenue reportedly crosses $50M ARR
Code-execution sandboxes for agent workflows; competing with E2B for the safe-code-execution layer
Per The Information; consumer-AI workload growth + Cursor + Vercel deal-driven
$355M co-led by Redpoint and General Catalyst (with Accel, Menlo); ~4x the prior valuation; ARR reportedly ~$300M
Serverless GPU platform for AI workloads. Targets developers who want Python-native deployment plus instant scale-to-zero. Series A raised $80M at a roughly $1.1B valuation in 2024 led by Lux Capital and Redpoint. Modal was founded in 2021, is headquartered in New York, NY and employs ~80.
Modal has raised ~$465M in total at a $4.65B valuation, based on the funding rounds Sterling tracks.
Sterling groups Modal in the AI Software sector, alongside CoreWeave (CRWV), Nebius Group (NBIS), Applied Digital (APLD), IREN (Iris Energy), Together AI (private) and Fireworks AI (private).
If you are researching Modal, also look at CoreWeave (CRWV), Nebius Group (NBIS) and Applied Digital (APLD). You can compare all of them side by side or browse the full AI Software sector on Sterling.
