Modal Hits $1 Billion Run Rate, Raises $750 Million

The AI infrastructure startup closed a Series D at a $15.75 billion post-money valuation led by Accel.

Updated on Nov. 2, 2026 in Startups

Isometric editorial illustration of a row of dark server cabinets, one open to reveal stacked compute modules glowing blue. — Modal raised $750 million in a Series D round at a $15.75 billion valuation led by Accel, after its run rate passed $1 billion. AI Illustration. Upload story photo >

Modal announced a $750 million Series D at a $15.75 billion post-money valuation, led by Accel with participation from Kleiner Perkins and existing investors. The company said it has surpassed a $1 billion annualized run rate, including $300 million from its Sandboxes product.

Why it matters

The milestone signals rapid commercial uptake of infrastructure that lets developers run generated code separately from other systems. Usage has tripled since the company's Series C financing five months earlier.

Modal reports a $1 billion annualized run rate, with its Sandboxes product contributing $300 million of that total. The company says usage has tripled since its Series C five months earlier, though the source does not detail how the run rate is measured.

The players

Modal

Modal is an AI infrastructure startup that provides compute for developers running AI workloads and generated code.

Accel

Accel is a venture capital firm that led the Series D financing for Modal.

Kleiner Perkins

Kleiner Perkins is a venture capital firm that participated in Modal's Series D alongside existing investors.

The details

Sandboxes, launched in 2023, let developers run generated code separately from other systems, and Modal reports creating nearly 3 billion Sandbox environments with capacity for 1 million running simultaneously. Modal's compute capacity spans more than 20 clouds, supported by internally developed scheduling, networking, storage, and container software.

2023: Sandboxes product launched.
Five months before the announcement: Modal completed its Series C financing.
November 2, 2026: Modal announced the $750 million Series D and run-rate milestone.

Roadmap

Sandboxes, launched in 2023, now account for $300 million of Modal's $1 billion annualized run rate, showing how quickly isolated code-execution environments have become a core revenue driver for AI infrastructure. The company's growth from a single product launch to a multi-billion-dollar valuation tracks the broader push to supply compute for AI-generated code.

For developers and businesses that rely on AI-generated code, Modal's growth points to more hosted options for running that code in isolated environments. The source does not describe changes to pricing or availability for customers.

The takeaway

Rapid growth in isolated code-execution infrastructure suggests developers are increasingly outsourcing the compute behind AI-generated code. Teams evaluating such tools should weigh scaling limits and cloud coverage alongside cost.