MoneyMay 13, 2026via The Information
Startup Modal in Talks to Raise at $4.5 Billion Valuation After Revenue Surges
Why it matters
Modal's explosive growth in AI agent infrastructure—driven by developer demand for sandboxed execution environments—signals a market inflection point for compute-as-a-service platforms built for the agentic era.
Key signals
- Modal raising at ~$4.5B valuation (80% premium from last round)
- Annualized revenue surged to ~$300M (5x increase from fall 2025)
- Primary growth driver: sandbox software for running AI agents without system contamination
- Core offering: GPU rental + agent execution infrastructure for developers
- Funding round still in negotiation phase as of May 13, 2026
The hook
$4.5B. That's Modal's new valuation after annualized revenue hit $300M—a 5x jump in just six months.
Modal, a startup that rents out Nvidia graphics processing units and software to help developers run and train models as well as agents, is in talks to raise money at around a $4.5 billion valuation. That would be an 80% premium to its last valuation from just a few months ago, according to two peop…