Modal Labs Raises $355M, Valued at $4.65B

Modal Labs has raised $355 million in a new funding round led by Redpoint Ventures and General Catalyst, pushing the New York-based startup's valuation to $4.65 billion — up from $1.1 billion just eight months ago. The round came in two tranches, with the second group of investors driving the valuation even higher. The serverless AI infrastructure company helps developers deploy AI applications without managing cloud servers, and also offers sandboxes for testing AI-generated code. Revenue has surged from $60 million to $300 million annually since September, fueled by rapid enterprise adoption of AI coding tools.