Annual revenue increased fivefold to $300 million; the computing platform Modal plans to raise funds at a $4.5 billion valuation.

According to Beating Monitoring, the GPU computing power and deployment platform Modal are in negotiations for a new round of financing.
According to The Information, its target valuation is approximately $4.5 billion, representing an 80% premium over the previous funding round a few months ago, with an expected raise of $150 million to $250 million.
Existing investors Accel and Redpoint Ventures are participating in the negotiations.

The direct support for the high valuation is the surge in revenue. Modal’s annualized revenue has reached about $300 million, five times that of last fall.

This growth is mainly driven by the sandbox demand for AI Agents. The sandbox provides developers with an isolated software environment, allowing Agents to execute code safely without damaging the main system. As companies like Ramp and Lovable extensively use sandboxes to develop Agents and conduct reinforcement learning, Modal has directly benefited from the explosive application layer demand.

However, behind this high growth, due to the enormous demand for computing power from leading companies like OpenAI, spot prices for GPUs have surged. Platforms like Modal, which lease GPUs from large cloud providers and then rent them to developers, may face serious profit margin compression in the future.