# Modal Labs Secures $750M Funding

Modal Labs, a New York-based AI inference infrastructure provider, is closing in on a **$750 million funding round** led by Accel, valuing the company at **$15.75 billion**. This substantial capital raise underscores the accelerating demand for AI inference services, particularly for open-source AI models, and signals growing competition in the AI infrastructure market. Procurement professionals and contractors should note the expanding market for AI inference platforms, which may influence future government and commercial AI infrastructure procurements.

- **Why this matters:** The large funding round highlights Modal Labs as a key player in AI inference infrastructure, potentially shaping procurement opportunities in AI service delivery.
- Agencies and contractors involved in AI and cloud infrastructure should evaluate Modal Labs’ offerings for integration or partnership possibilities.
- The emphasis on open-source model support indicates a shift toward more flexible, scalable AI solutions relevant to government AI modernization efforts.
- Organizations should consider the competitive landscape as other startups also attract significant investment, signaling robust innovation and evolving procurement requirements in AI infrastructure.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** September 28, 2026

### Vendors
- Modal Labs (prime contractor)
- Accel (lead investor)

### Key Quotes
> We’re aware a Modal customer published an unauthenticated endpoint that allowed anyone on the internet to use their sandboxes for code execution.
> — Akshat Bubna, CTO of Modal Labs

### Sources
- [Source: Inference provider Modal Labs closing in on $750M round at $15.75B valuation | TechCrunch](https://techcrunch.com/2026/09/28/source-inference-provider-modal-labs-closing-in-on-750m-round-at-15-75b-valuation) - TechCrunch