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

AIMPACT News, May 14 (UTC+8), its estimated valuation is approximately $4.5 billion, an 80% premium over the previous funding round a few months ago. It is expected to raise $150 million to $250 million, with existing investors Accel and Redpoint Ventures currently in negotiations. The high valuation is directly supported by a 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 demand for AI Agent sandboxes. Sandboxes provide 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 perform reinforcement learning, Modal has directly benefited from the explosive application layer demand. However, behind this high growth, due to the huge demand for computing power from leading companies like OpenAI, the spot prices for GPUs have surged. Platforms like Modal, which rent GPUs from large cloud providers and then lease them to developers, may see their future profit margins severely squeezed. (Source: BlockBeats)