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

Modal Labs, an AI inference provider, is raising $750 million at a $15.75 billion valuation, more than tripling its value from four months prior. Inference is the process of running an already-trained AI model to generate outputs, a service experiencing high demand particularly from customers using open-source models. Other inference startups are also raising capital at significantly increased valuations, though these companies operate with thin margins because the cost of acquiring or leasing computing power remains very high. The funding reflects rapid revenue growth in the sector, with one inference startup announcing annualized revenue of $1 billion in July.