Modal Labs Nears $750M Round at $15.75B Valuation, Tripling Valuation in Four Months

AI inference infrastructure provider Modal Labs is close to raising $750 million in a funding round led by Accel at a $15.75 billion valuation, a source familiar with the deal said on September 28, 2026. The new round would more than triple Modal's $4.65 billion valuation from four months ago, when it announced a $355 million raise. Modal Labs declined to comment. The company surpassed $300 million in annualized revenue as of May 2026, it told Reuters. The deal reflects soaring demand for inference services, particularly from customers using open-source models. Rival Baseten is nearing a round at a $26 billion valuation, while Fireworks and Fal have also held investor talks on significantly higher valuations, according to reports. Revenue is growing fast across the sector, but margins remain thin because compute costs stay high. Modal, founded in 2021 and based in New York with roughly 150 employees, counts Cognition, Suno, Ramp, and Substack among its customers.