Modal has become New York City's newest AI infrastructure decacorn, according to a report from Latent Space's AINews. The company announced it crossed $1B in annualized run rate and raised a $750M Series D at a $15.75B valuation, led by Accel. Since its Series C, usage has tripled and the company has grown more than 15x year-over-year.
The growth is driven largely by Sandboxes, a product launched in 2023 after the company noticed developers using LLMs to generate code. Sandboxes now accounts for $300M in run rate on its own, with close to 3 billion sandboxes spun up and scaling to a million concurrent. Use cases range from background agents to reinforcement learning and vibecoding platforms.
Modal CTO Akshat Bubna said the infrastructure needs to evolve for an "agent experience," citing requirements like millions of concurrent sandboxes, secure and elastic RDMA clusters for distributed training, and building state-of-the-art speculators for inference. The source notes that Modal was previously categorized as an infra unicorn, and this round moves it into decacorn territory.