AI inference startup Modal Labs in talks to raise at $2.5B valuation, sources say
The AI inference gold rush is on, with valuations skyrocketing overnight.
Deep Dive
Modal Labs, an AI inference infrastructure startup, is reportedly in early talks to raise a new round at a $2.5 billion valuation, led by General Catalyst. This would more than double its $1.1B valuation from less than five months ago. The company has an ARR of ~$50M. This follows massive raises for competitors Baseten ($5B) and Fireworks AI ($4B), signaling intense investor frenzy in the inference optimization space.
Why It Matters
Soaring valuations show investors are betting billions that faster, cheaper AI inference is the next critical infrastructure layer.