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.