Source: Inference provider Modal Labs closing in on $750M round at $15.75B valuation

Modal Labs is close to raising $750 million led by Accel at a $15.75 billion valuation, more than tripling its value from four months ago. The deal comes as AI inference providers see rapid revenue growth from customers running trained models, especially open-source ones, despite high compute costs and thin margins.

The round underscores how investor focus is shifting from model training to the infrastructure needed to serve models at scale. Rising valuations for Modal, Baseten, Fireworks, and Fal suggest inference infrastructure is becoming a core battleground, but profitability may remain constrained by GPU and cloud capacity costs.