Source: Inference provider Modal Labs closing in on $750M round at $15.75B valuation

AI inference infrastructure provider Modal Labs is nearing a $750 million funding round led by Accel, which would value the company at $15.75 billion. This follows a $355 million raise just four months ago, which valued the company at $4.65 billion. The deal reflects the surging demand for inference services, particularly for customers utilizing open-source models. While revenue for inference startups is growing rapidly, margins remain thin due to the high costs of acquiring or leasing compute power. Founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna, Modal Labs has quickly become a key player in the AI infrastructure space, with its founders bringing extensive experience from companies like Spotify and Better.com.