Modal Labs, an AI company, is raising money at a $2.5 billion value. This is much higher than its last valuation of $1.1 billion from five months ago.
Modal Labs: This startup helps make AI faster and cheaper to use.
The company makes AI tools that work better and cost less money. They want to help people get answers from AI more quickly.
Modal Labs CEO Erik Bernhardsson says the company is not trying to raise money right now. But people with knowledge of the deal say they are talking to investors about a $2.5 billion valuation.
The company makes about $50 million each year from its AI tools. They help computers understand what people want and give answers faster.
Modal Labs is not alone in getting bigger valuations. Another AI company called Baseten now has a $5 billion value after raising $300 million. Fireworks AI got $250 million at a $4 billion value. These companies all work on making AI better and faster.
Erik Bernhardtsson started Modal Labs in 2021 after working at big companies like Spotify. The company already has support from investors like Lux Capital and Redpoint Ventures.