BREAKING — Modal seals $355M Series C at a $4.65B valuation Annualized revenue jumps to ~$300M as of April 2026 Sub-second cold starts on H100 and B200 GPUs Customers include Suno · Mistral · Ramp · Substack · Harvey Entire stack built from scratch in Rust BREAKING — Modal seals $355M Series C at a $4.65B valuation Annualized revenue jumps to ~$300M as of April 2026 Sub-second cold starts on H100 and B200 GPUs Customers include Suno · Mistral · Ramp · Substack · Harvey Entire stack built from scratch in Rust
YesPress · Company Profile · AI Infrastructure

Modal

"AI infrastructure that developers love."

The New York company that rebuilt the cloud from the metal up - so running a GPU is as simple as writing Python.

Modal logo and brand mark - AI Infrastructure that developers love

Modal's brand mark and tagline. New York, NY · founded 2021

$4.65B
Valuation (2026)
~$300M
Annualized Revenue
$467M
Total Raised
<1s
Cold Start
What Modal Does

The serverless cloud built for AI workloads

Modal is a serverless platform where developers run compute-intensive AI and data workloads - model inference, training, fine-tuning, batch jobs, and sandboxed code - without ever touching a server, a Dockerfile, or an orchestration layer.

The pitch is deceptively simple. You write ordinary Python, declare the hardware you want with a decorator, and Modal handles the rest: it provisions the GPUs, boots the containers, scales the workload out and back to zero, and bills you by the second for exactly what you used. There are no idle-GPU charges, no egress fees, and no long-term commitments.

What makes that possible is unusual for a cloud startup. Rather than reselling capacity from a hyperscaler and wrapping it in a nicer dashboard, Modal built the hard parts itself. The container runtime, the file system, the scheduler, and the GPU memory snapshotting were all written from scratch in Rust. That vertical ownership is what lets Modal promise something most serverless platforms cannot: cold starts measured in fractions of a second, even for GPU workloads.

For the machine-learning teams who live with the friction of infrastructure - waiting on containers, wrestling with CUDA drivers, paying for GPUs that sit idle - the appeal is immediate. The platform spans the full lifecycle of an AI application, from a researcher's first fine-tuning experiment to a production endpoint serving thousands of requests a second.

The company describes its own product plainly on its homepage: infrastructure that developers love. It is a claim that sounds like marketing until you notice how many AI teams have quietly moved their workloads onto it.

Most cloud startups rent GPUs and resell them. Modal did the opposite - it built the runtime.
Who Uses It & Why

From first experiment to production scale

Modal serves thousands of ML and AI engineering teams, from two-person startups to established enterprises. Its named customers read like a map of the current AI build-out.

"65% latency reduction."
Decagon
"4 months faster to launch."
Suno · Audio AI
"Saving 2 engineers' worth of ongoing time."
Quora

The customer list spans the categories where GPU compute is the bottleneck: Suno in audio generation, Runway in video, Mistral in foundation models, Harvey AI and Cognition in agents, Lovable in AI app creation, and Ramp and Substack in production consumer and B2B software. The common thread is teams that need serious compute occasionally, unpredictably, and without a platform team to babysit it.

The problems Modal removes are the ones every ML engineer knows by heart. GPUs are expensive and scarce, so leaving them running to avoid slow starts wastes money - but scaling from cold is painfully slow on most platforms. Packaging code for the cloud means Dockerfiles and dependency hell. And running AI-generated code safely, now a daily need in the agent era, requires isolation most teams do not want to build. Modal's answer to each is to make the hard thing the default.

Products & Services

One platform, five surfaces

Core · 2021

Modal SDK

Python-native cloud development. Define logic and hardware in one codebase and attach a GPU with a single decorator.

Inference

Model Serving

Low-latency, autoscaling deployment for LLMs, audio, image, video, and multimodal models with web endpoints and observability.

Training

Fine-tuning & RL

Single- and multi-node GPU training, reinforcement learning, and parallel hyperparameter sweeps on B200, H100, and A100.

2024

Sandboxes

Secure, ephemeral, gVisor-isolated environments for running AI-generated code, coding agents, and RL rollouts.

Batch

Batch & Queues

Massively parallel batch processing and distributed job queues for embeddings, data jobs, and bursty workloads.

2025

Notebooks

Collaborative, GPU-backed notebooks for experimentation and research without local hardware limits.

How It's Different

Owning the stack is the whole strategy

Sub-second cold starts

A custom Rust runtime and GPU memory snapshotting attack serverless GPU's oldest problem head-on, so functions boot in seconds and scale to zero without penalty.

Pure Python, no YAML

Where rivals rely on REST configs or YAML files, Modal integrates through the language ML engineers already write. Zero config files to ship a GPU function.

Pay-per-second economics

No egress fees, no storage surprises, no idle-GPU bills. Billing tracks consumption to the second - a sharp contrast to hyperscaler invoices.

Built from the metal up

Container runtime, file system, and scheduler are all in-house. Modal can promise things a company reselling AWS simply cannot.

The competitive field is crowded - Baseten, Replicate, RunPod, Together AI, Cerebrium, Beam, and Fal on one side, and hyperscalers like AWS SageMaker and Google Cloud Run adding scale-to-zero GPU features on the other. Modal's position is the one carved out by depth rather than breadth: it competes on developer experience and cold-start performance rather than on being the cheapest raw GPU-hour.

Everyone said serverless GPUs were impossible - cold starts too slow, economics too ugly. Modal treated that constraint as the business.
The People

Two builders, both Olympiad champions

Modal was founded in 2021 by Erik Bernhardsson and Akshat Bubna - both gold medalists at the International Olympiad in Informatics.

Erik Bernhardsson · CEO

Former ML lead at Spotify, where he shaped early music recommendation systems, and former CTO of Better.com. Creator of Annoy, the open-source nearest-neighbor library. IOI gold, Sweden, 2003. He built Modal as the tool he wished he'd had while fighting infrastructure to ship ML.

Akshat Bubna · CTO

Formerly an engineer at Scale AI. IOI gold, India, 2014. He leads the systems work behind Modal's from-scratch Rust runtime - the container engine, file system, and scheduler that make sub-second GPU cold starts possible.

The company is headquartered at 222 Broadway in Manhattan, with additional offices in San Francisco and Stockholm, and a team of roughly 120. The culture is engineering-led and infrastructure-obsessed, defined by a willingness to build unglamorous plumbing rather than assemble someone else's.

Business & Funding

A consumption model that compounds

Modal runs a consumption-based SaaS model - billing by the second for compute, with monthly free credits and premium options for guaranteed execution and specific regions.

RoundAmountDateLead Investors
Seed$7M2022Amplify Partners
Series A$16MOct 2023Redpoint Ventures
Series B$87MSept 2025Lux Capital ($1.1B valuation)
Series C$355MMay 2026General Catalyst, Redpoint, Menlo, Bain, Accel

The trajectory is what caught investors' attention: annualized revenue climbed from roughly $119M at the end of 2025 to about $300M by April 2026. The $355M Series C valued the company at $4.65 billion - a signal that the market believes AI-native infrastructure is a durable layer, not a passing bet.

Milestones

The road so far

2021

Modal Labs founded

Bernhardsson and Bubna start the company in New York to make GPU workloads as easy as local Python.

2022

$7M seed round

Amplify Partners leads as the team builds its Rust-based serverless runtime.

2023

$16M Series A

Redpoint Ventures leads as Modal opens up inference, training, and batch workloads.

2024

Sandboxes launch

Secure, ephemeral environments arrive for running AI-generated code and coding agents.

2025

$87M Series B · unicorn

Lux Capital leads at a $1.1B valuation; GPU Notebooks and multi-node clusters ship.

2026

$355M Series C at $4.65B

General Catalyst and Redpoint lead as annualized revenue reaches roughly $300M.

Worth Knowing

Details that stick

Olympiad pedigree

Both founders won IOI gold - Sweden 2003 and India 2014.

Rust to the metal

The container runtime was written from scratch to kill cold starts, not patched onto someone else's cloud.

Zero to a thousand

A single function can scale from zero to 1,000+ GPUs and back, billed only for seconds used.

serverless gpullm inferencefine-tuning sandboxesrust runtimeh100 · b200 pay-per-secondautoscalingsoc2 · hipaa
FAQ

Questions people ask

What does Modal do?

Modal is a serverless cloud platform for running compute-intensive AI, data, and GPU workloads - inference, training, fine-tuning, batch jobs, and sandboxed code - without managing servers. Developers write Python, attach GPUs with a decorator, and the platform autoscales and bills by the second.

Who founded Modal and when?

Modal (Modal Labs) was founded in 2021 by Erik Bernhardsson (CEO, formerly Spotify and Better.com) and Akshat Bubna (CTO). Both are International Olympiad in Informatics gold medalists.

How much funding has Modal raised?

Modal has raised roughly $465M total, including a $355M Series C in May 2026 at a $4.65B post-money valuation, led by General Catalyst and Redpoint, following earlier rounds from Lux Capital, Redpoint, and Amplify Partners.

How is Modal different from AWS or its competitors?

Modal built its entire stack - container runtime, file system, scheduler, and GPU memory snapshotting - from scratch in Rust, enabling sub-second cold starts and true scale-to-zero serverless GPUs. It integrates through pure Python rather than YAML or REST config, and charges per second with no egress fees.

Who uses Modal?

Thousands of ML and AI teams, from startups to enterprises. Named customers include Suno, Mistral, Ramp, Substack, Harvey AI, Cognition, Lovable, Quora, Runway, and Physical Intelligence.

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