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AI cloud Modal raises $750m in Series D funding round

Credited to Data Center Dynamics · datacenterdynamics.com · 7h ago

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AI cloud company Modal has secured $750 million in a Series D funding round.

In the company's announcement, it stated that the round gave Modal a $15.75bn post-money valuation.

The funding round was led by Accel, with participation from Kleiner Perkins and existing investors including Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners, and Bain Capital Ventures.

Modal completed its Series C funding round just five months ago, bringing in $355m at a valuation of $4.65bn. That round valued the company at 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.

Modal CEO Erik Bernhardsson said in a LinkedIn post: "Just five months ago, when we announced our Series C, I wrote that demand was accelerating. Since then, usage has tripled and we’ve grown more than 15x year-over-year.

"We recently crossed $1 billion in annualized run rate with no sign of slowing down. More than just a big number, I think this is evidence of something more interesting: AI has unlocked a whole new set of software capabilities that couldn’t have existed just a few years ago, and the old stack doesn’t quite fit them. Every shift in software changes both what people can build and the infrastructure they need to build it. At Modal, we’re designing a new set of building blocks for the next generation of software."

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 zero 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.

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

Indian AI cloud startup Neysa plots IPO in 2027

Blackstone-backed Neysa is looking to launch an initial public offering as soon as the end of 2027, according to a report from The Economic Times.

Neysa was founded in 2023. In April 2025, the company revealed it was teaming up with NTT Data and the Telangana government to establish a 400MW GPU cluster in the country. In total, that was said to comprise 25,000 GPUs, though the type was unspecified. Since then, it has secured $600 million in funding from Blackstone Inc. and, today, has some 12,500 live GPUs and expects to take that number beyond 20,000 before March 2027.

Speaking to ET, CEO Sharad Sanghi said that the company is looking at a cluster of 9,216 Vera Rubin GPUs and a similar-sized cluster for Helios, as well as ordering another 8,000 Blackwell GPUs.

With this, the company is also seeking to expand its data center footprint. “We are looking at land and considering building our own facilities, but that would be about two years down the road. For the next two years, we will continue renting space,” he said.

The company currently operates in India, but is also likely to expand into Malaysia, and has not ruled out the possibility of operating in Japan also.

QumulusAI puts $71.9m Blackwell agreement into production

Neocloud startup QumulusAI has completed the final handoff of Nvidia B300s under a $71.9m, three-year contract with a customer. According to the company, this has been completed within 10 weeks of signing.

This was split between two deployments: B200 capacity in September, and B300 capacity at a Kansas City data center. The company has since signed a $211.9 million, three-year take-or-pay agreement for capacity at QumulusAI's Atlanta, Georgia, site.

In addition, the company has detailed the timeline for its ongoing deployment across six sites that will total 11.75MW.

7MW are active and generating revenue today, a further 1MW is energized and set for handover at the end of October, and the remaining 3.75MW at the metro Atlanta site, announced in August and sold last month under a $211.9 million, three-year take-or-pay agreement, is targeted for activation in early 2027. The company also signed a $29.1 million agreement in September, which will be deployed at an additional site.

With the $240.9 million in agreements announced last month, QumulusAI’s cumulative signed customer contract value has reached $523.4 million, 85 percent of the $282.5 million reported with the company’s second-quarter 2026 results.

“Crossing half a billion dollars in signed customer contracts is a milestone worth marking, and we got there by doing exactly what we said we would do: sign, deploy and expand,” said Michael Maniscalco, CEO of QumulusAI.

“Our second-quarter revenue of $6.7 million reflected what we had deployed, not what we had sold. Revenue follows handoff, and the handoffs are happening now. All of our capacity is under contract, and we already have a customer signed for the next site, so our focus is on securing the next block.”