Startup Modal in Talks to Raise at $4.5 Billion Valuation After Revenue Surges

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 people with knowledge of the round.

The steep hike in valuation follows a jump in its annualized revenue to around $300 million, up five times from its pace last fall, one of the people with knowledge said. Much of that growth has stemmed from demand for Modal’s sandboxes, software environments in which developers can run AI agents and code without affecting the rest of their computer and code base, the person said.