Modal Labs, a startup specializing in inference infrastructure for AI, is trading with venture capital funds to raise new capital with a valuation of about 2.5 billion USD.
If completed according to these terms, the company's valuation will more than double compared to the level of 1.1 billion USD in September 2025, according to TechCrunch on February 12.
Modal Labs' converted annual revenue reaches about 50 million USD. Modal Labs focuses on optimizing reasoning, the operation of AI models that have been trained to create answers to user requests. By improving reasoning efficiency, businesses can reduce computing costs and shorten delays between when users make requests and when AI responds.
Modal Labs is in the small group of companies specializing in reasoning that are attracting strong interest from investors. Last week, Baseten, a company operating in the same field as Modal Labs, raised an additional 300 million USD from investors. This deal valued the company at 5 billion USD, a sharp increase compared to 2.1 billion USD in the capital raising round in September last year.
Similarly, Fireworks AI - a cloud-based reasoning infrastructure provider - raised $250 million with a valuation of $4 billion in October 2025.
Startups in the technology sector such as Modal Labs, Baseten often raise capital from venture capital funds (VC). These businesses negotiate with VC funds to raise capital, in return investors will be divided enterprise shares.
This is a characteristic of startups, when investors accept risks in exchange for rapid growth potential.
