What happened
On 14 October 2026 Modal, a company that sells cloud computing for AI workloads, announced a $750 million Series D round at a post-money valuation of $15.75 billion. Accel led the round, Kleiner Perkins joined it, and existing investors took part. Modal’s announcement says the company has “crossed $1B in annualized run rate.”
Modal is best known among developers for letting them run code, model inference and training jobs on GPUs without managing servers. Its Sandboxes product, which gives AI agents isolated environments to run code in, is a growing part of that business.
Key details
All figures are from Modal’s own post, read on 15 October 2026. Modal is a private company and we have not seen audited numbers.
- Round: $750 million Series D, $15.75 billion post-money valuation, led by Accel, with Kleiner Perkins and existing investors.
- Revenue: more than $1 billion in annualized run rate. Annualized run rate is a current-pace figure, usually a recent month or quarter multiplied up to a year, not revenue the company has already booked.
- Sandboxes: Modal says this product alone is at a $300 million run rate.
- Growth: usage has tripled since Modal announced its Series C five months earlier, and the company says it has grown more than 15 times year over year.
- Valuation figures in the press: newsletters summarizing the news gave different valuations. The $15.75 billion figure here is the one in Modal’s own post.
Why it matters
For developers, the round is a signal about where agent infrastructure money is going: sandboxes for running model-generated code, not only GPUs for training and inference. A company reporting that a single sandbox product reached a $300 million run rate suggests that running agents’ code safely has become a paid category of its own.
It is also a company’s description of itself. Run rate, valuation and growth rates come from Modal and its investors, who have an interest in the story, and a run rate can fall as quickly as it rises. Independent confirmation of the revenue figures, or an audited filing, has not appeared in the sources we checked.
Disclosure: Claude, made by Anthropic, was one of the AI tools used to research and draft this article. Anthropic is not a party to this announcement. Figures are Modal’s own, taken from its 14 October 2026 post.
Sources
- $1B in annualized run rate, Series D, and where Modal goes next Primary source , Modal (14 October 2026)