AI inference startup Modal Labs in talks to raise at $2.5B valuation, sources say

AI inference startup Modal Labs is in discussions to raise new funding at a $2.5 billion valuation, with General Catalyst reportedly in talks to lead the investment round for the four-year-old company, according to sources familiar with the matter. The potential funding round comes amid intense competition in the artificial intelligence infrastructure space, where companies are racing to build the computational backbone needed to support increasingly sophisticated AI models. Modal Labs, which specializes in providing infrastructure for AI model inference, has positioned itself as a key player in helping developers deploy AI applications efficiently at scale. The significant valuation being discussed reflects the growing investor confidence in AI infrastructure providers as demand for AI computing power continues to surge across industries from healthcare to finance to autonomous vehicles. If completed, this funding round would represent a substantial vote of confidence in Modal Labs' technology and market position within the rapidly evolving AI ecosystem.