Modal
Serverless GPU cloud with a Pythonic developer API. Used by Suno, Substack, Replicate, and Vercel
SectorsAI Software
Market Metrics
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
Updated at 2026-Q2
Funding History
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 |
Updated at 2026-Q2
Product Specifications
| 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 |
Updated at 2026-Q2
Partnerships & Investors
SunoAnchor Customer
Suno's music-generation inference runs major workloads on Modal.
ReplicateCustomer (despite competitive overlap)
Some Replicate workloads run on Modal infrastructure; cooperative-coopetition relationship.
Substack + Vercel + PlotAnchor Customers
Substack's recommendation systems + Vercel-deployed AI agents standardize on Modal.
CursorCustomer
Background agents + BugBot workloads run on Modal.
Redpoint + General CatalystLead Investors
Co-led the May 2026 Series C at a $4.65B valuation.
Updated at 2026-Q2
Key Milestones
Aug 2021
Company Founded
Erik Bernhardsson (former Spotify ML / recommendations) and Akshat Bubna launch Modal in New York
2022
Modal Functions Launch
Pythonic serverless container API GA; targets AI/ML workloads with first-class GPU support
May 2023
Series A
Redpoint leads $16M; early customers like Substack standardize on Modal
Apr 2024
Suno + Replicate Anchor Customers
Suno's music generation + Replicate's hosted inference both run major workloads on Modal
Sep 2024
Series B at $1.1B Unicorn Status
Lux Capital leads $80M; revenue reportedly crosses $50M ARR
Q1 2025
Modal Sandboxes GA
Code-execution sandboxes for agent workflows; competing with E2B for the safe-code-execution layer
Q3 2025
ARR Reportedly $100M+
Per The Information; consumer-AI workload growth + Cursor + Vercel deal-driven
May 2026
Series C at $4.65B
$355M co-led by Redpoint and General Catalyst (with Accel, Menlo); ~4x the prior valuation; ARR reportedly ~$300M
Updated at 2026-Q2