Modal Labs ($MODO) Eyes $2.5B Financing, Doubles Previous Inference AI Valuation

Modal Labs (MODO) is in early discussions to raise a new round at a $2.5B valuation, according to four sources, more than doubling its previous $1.1B mark. General Catalyst is in talks to lead the round; the company’s ARR is about $50M. The startup, focused on optimizing AI inference to reduce compute costs and response latency, is one of several inference platforms seeing valuations more than double recently, including Baseten’s $5B and Fireworks AI’s $4B. Terms are still under negotiation.