Modal raises $750m in Series D at $15.75bn, five months after Series C

Modal raised $750 million in a Series D that valued the AI cloud company at $15.75 billion post-money, the company said. Accel led the financing, with Kleiner Perkins and existing investors Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures participating.

Modal completed its Series C five months ago: $355 million at a $4.65 billion valuation. The Series C valuation was more than four times the $1.1 billion valuation attached to its September 2025 Series B, which raised $80 million. The new post-money valuation is about 3.4 times the Series C figure.

Chief executive Erik Bernhardsson attributed the raise to demand growth, saying usage has tripled since the Series C announcement and the company has grown more than 15x year over year. In a LinkedIn post, he wrote: "We recently crossed $1 billion in annualized run rate with no sign of slowing down."

Modal sells compute through a serverless platform built on its own storage and compute layer. It does not own or operate data centers. It pools capacity from other providers, currently 13 cloud partners. Modal says users can scale from zero to 1,000 GPUs in minutes without reservations, drawing on what it describes as hundreds of data centers around the world.

Modal is a known customer of WhiteFiber, according to Data Center Dynamics. WhiteFiber was founded in 2024 by bitcoin mining company Bit Digital. As this publication reported in August, it paid $60 million for North Carolina textile plants in Yadkin County to convert into data centers.

Data Center Dynamics, citing The Economic Times, says Blackstone-backed Neysa is looking to launch an IPO as soon as the end of 2027. Neysa, founded in 2023, has secured $600 million from Blackstone Inc. and has about 12,500 live GPUs; it expects to exceed 20,000 before March 2027. In April 2025, it said it would work with NTT Data and the Telangana government to establish a 400MW data center with 25,000 GPUs. Neysa chief executive Sharad Sanghi spoke to The Economic Times for the report.