Modal and Baseten seek major funding rounds as AI infrastructure gains traction

Two AI infrastructure startups, Modal Labs and Baseten, are in advanced talks to secure significant funding rounds that could substantially increase their valuations. According to two individuals familiar with the discussions, Modal Labs is seeking new financing at a valuation of approximately $15 billion, roughly triple its value from a round four months ago. Meanwhile, Baseten is reportedly in negotiations for a funding round that could value the company at $26 billion. These developments highlight the growing interest from investors in AI infrastructure services, as demand for tools that enable businesses to run AI models continues to rise. The funding rounds reflect a broader trend of increased capital flowing into the sector, signaling strong confidence in the long-term potential of AI-driven platforms.