The new valuation is more than triple the $4.6 billion Modal was worth after its Series C round in May, and a 14-fold jump from the $1.1 billion valuation it carried in September 2025. The company's annualized revenue run rate now exceeds $1 billion, up from roughly $300 million in May. Platform usage tripled in the five months since that previous round, and the business grew more than 15-fold year-on-year.

Modal was co-founded by Akshat Bubna and Erik Bernhardsson. Bubna, a computer scientist raised in Delhi, won a gold medal at the 2014 International Olympiad in Informatics. He has said conventional cloud infrastructure isn't designed for modern AI demands, an assessment that prompted Modal to build its own software systems.

The company specializes in serverless infrastructure for AI applications and now employs more than 200 people across New York, San Francisco, and Stockholm. Its clients include DoorDash, Cognition, Ramp, Runway, Physical Intelligence, Generalist AI, and 1X.

One of Modal's products, Sandboxes, launched in 2023 and has reached a $300 million annualized run rate of its own. It has launched nearly three billion environments to date and supports up to one million running simultaneously.