Modal Labs, an AI cloud startup based in New York City, has secured $355 million in a Series C funding round.

The round saw Modal Labs valued at $4.65 billion, more than four times what it was worth for its Series B funding round completed in September 2025, which secured the company $80m at a $1.1bn valuation.

The funding round was led by General Catalyst and Redpoint, and saw participation from Menlo, Bain Capital Ventures, and Accel, which are new investors in the company. Existing investors also participated.

The round was split into two tranches: The first tranche of investors invested at a $2.5bn valuation, but increased interest led to a second tranche at the higher valuation.

Modal offers access to compute through a serverless infrastructure platform. The company has a self-developed storage and compute layer, which it says has enabled it to "achieve outcomes that seem impossible," for example, reportedly enabling users to scale from 0 to 1,000 GPUs in minutes without reservations by pooling capacity across "hundreds of data centers around the world."

The company does not own/operate data centers, but works with other cloud providers. Currently, it has 13 cloud partners and is a known customer of WhiteFiber, which was founded in 2024 by Bitcoin mining company Bit Digital, which also owns Canadian colocation provider Enovum.

Modal Labs was founded by Erik Bernhardsson and Akshat Bubna, who serve as CEO and CTO, respectively.

In a LinkedIn post, Bernhardsson said: "This is a huge milestone for us, and it feels like validation of the problem we set out to solve years ago: current infrastructure isn't built for AI applications (or more broadly, compute-intensive applications). We envisioned something else – infrastructure built for fast iteration, elastic compute, and developer experience from day one. That meant going deeper than most people thought was reasonable: building our own runtime, scheduler, filesystem, and orchestration layer from scratch.

"It's been super rewarding to see the wide span of things customers are building on top of it: from AI coding tools and biotech platforms to large-scale inference systems and research workloads."