AI tools<\/a>, called inference. It also has a sandbox product that allows developers to test their code, increasingly created through AI, before embedding \u200cit in their products.<\/p>\nThe company’s \u2060new round is led by Redpoint Ventures and General Catalyst, which will have a board seat. The Series C round values \u2060the company at $4.65 billion, the company said, up from $1.1 billion in the fall.<\/p>\n
The valuation reflects Modal\u2019s surge in revenue, which has spiked in the last six months \u200bas more \u200bcompanies build products with AI code, Bernhardsson \u200bsaid on Tuesday. The company\u2019s \u200cannualized revenue is about $300 million, up from an annualized rate of $60 million in September.<\/p>\n
\u201cCoding for the last six months has been driving everything,\u201d Bernhardsson said, adding that Modal’s customers include biotech companies, hedge funds and two weather-forecasting firms.<\/p>\n
During that same time frame, however, computational resources have become more expensive and harder \u200cto find. Bernhardsson says the company cast \u200ba wider net and found compute providers \u200bthat he had never heard \u200bof before. Modal works with 13 cloud companies, up from \u200cfive last year.<\/p>\n
Modal raised cash in \u200bthe Series C round \u200bin two tranches. The first tranche of investors invested at a $2.5 billion valuation, the company said. But more investors started knocking on Bernhardsson’s \u200bdoor, leading to the \u200ccompany raising a second tranche at the $4.65 billion valuation. Investors in \u200bthe second tranche include Accel and Menlo Ventures.<\/p>\n
(Reporting by Deepa Seetharaman \u200bin San FranciscoEditing by Rod Nickel)<\/p>\n","protected":false},"excerpt":{"rendered":"By Deepa Seetharaman SAN FRANCISCO, May 21 (Reuters) – AI startup Modal raised $355 million in a new…\n","protected":false},"author":2,"featured_media":438840,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,733,363,364,224306,224307,111,139,69,110232,145],"class_list":["post-438839","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-startups","tag-artificial-intelligence","tag-artificialintelligence","tag-erik-bernhardsson","tag-modal","tag-new-zealand","tag-newzealand","tag-nz","tag-redpoint-ventures","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/438839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=438839"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/438839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/438840"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=438839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=438839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=438839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}