Modal Labs Raises $750 Million in Series D Funding
Modal Labs, a New York-based company specializing in cloud infrastructure for AI applications, announced a significant financial milestone on October 14, 2026. The company secured $750 million in a Series D funding round led by Accel, with participation from Kleiner Perkins. This investment elevates Modal Labs to a valuation of $15.75 billion.
Modal Labs provides cloud infrastructure that supports the development, training, and deployment of AI applications at scale. The company is co-founded by Akshat Bubna, who serves as the CTO, and John Wilder, with Erik Bernhardsson leading as CEO.
Investor Participation
Accel spearheaded the Series D round, demonstrating continued confidence in Modal Labs' growth trajectory. Kleiner Perkins also participated in the round, alongside several existing investors.
Use of Funds
While specific details on the allocation of the newly raised capital were not disclosed, the significant investment suggests a focus on expanding Modal Labs' infrastructure capabilities and potentially scaling their services to meet growing demand. The company’s Sandboxes service, which provides hosted containers for AI workloads, is a key area of growth. Sandboxes can provision tens of thousands of containers per second, a capability driven by a custom infrastructure management system.
Growth and Innovation
Modal Labs has experienced rapid growth, with its annualized revenue more than tripling since its previous funding round. A substantial portion of this revenue is attributed to the Sandboxes service, which supports AI workloads by offering scalable and efficient container management. The service's ability to run 1 million concurrent containers was confirmed in a recent internal test.
Sandboxes also features a Secret Injection capability, allowing AI agents to use application login credentials securely, protecting against unauthorized access and cyber threats.
Executive Insights
Erik Bernhardsson, CEO of Modal Labs, emphasized the company's commitment to enhancing its infrastructure offerings to support the burgeoning demands of AI development. "Our focus remains on providing robust and scalable solutions for AI teams," he said.
Conclusion
With this new funding, Modal Labs is well-positioned to continue its growth and expand its offerings in the AI infrastructure space. The backing from prominent investors like Accel and Kleiner Perkins further solidifies its position as a key player in the industry.