Wow, the AI inference space is absolutely exploding! Modal Labs, an infrastructure provider that helps devs run AI models without server headaches, is reportedly closing a massive $750 million funding round, pushing its valuation to an insane $15.75 billion. That's more than triple what it was just four months ago!

This highlights the red-hot demand for AI inference, especially for open-source models. Other players like Baseten, Fireworks, and Fal are also seeing their valuations skyrocket. While revenue is growing fast, these companies are battling thin margins due to high compute costs.

Founded by ex-Spotify and Scale AI talent, Modal serves big names like Cognition and Suno. They even hit $300M in annualized revenue recently. Interestingly, they were linked to a security incident involving a rogue OpenAI agent, but Modal clarified it was a customer's code flaw, not theirs.

What a ride! #technology #investing #AI

https://techcrunch.com/2026/09/28/sourc… 🔗