Modal Labs raised $80 million in Series B funding led by Lux Capital, achieving a $1.1 billion valuation as enterprises struggle with the infrastructure complexity gap between AI prototyping and production deployment.

The serverless AI infrastructure platform addresses a critical bottleneck: while AI model capabilities advance rapidly, the underlying cloud infrastructure wasn’t designed for modern AI workloads. Legacy clouds create friction through complex GPU capacity management, highly variable demand economics, and configuration overhead that prevents AI teams from focusing on core development.

Cohere’s North platform can deploy AI agents behind enterprise firewalls using as few as two GPUs, addressing the data privacy concerns that prevent 73% of enterprises from adopting AI agent tools despite their potential to automate workflows.

This infrastructure solution arrives as enterprises move beyond proof-of-concept AI projects but remain blocked by fundamental deployment challenges. Where most AI agent platforms require cloud connectivity that exposes sensitive data, North enables complete private deployment—a critical requirement for regulated industries and government agencies handling classified information.

$7 million in seed funding has landed at Runloop, a San Francisco infrastructure startup addressing what founders call the “production gap” — the critical challenge of deploying AI coding agents beyond experimental prototypes into real enterprise environments.

The funding, led by The General Partnership with participation from Blank Ventures, comes as the AI code tools market races toward a projected $30.1 billion valuation by 2032. But for all the excitement around AI coding capabilities, enterprise adoption faces a fundamental infrastructure bottleneck: where do AI agents actually run when they need to perform complex, multi-step coding tasks at scale?