Modal's Sandboxes Hit $300M Run Rate
Modal's isolated code-execution product now drives part of a $1 billion annualized run rate, a company-reported milestone.
Updated on Nov. 2, 2026 in Startups
Modal, a cloud platform for running AI and code workloads, announced a $750 million Series D at a $15.75 billion post-money valuation. The company also said it has surpassed $1 billion in annualized run rate, with $300 million of that coming from its Sandboxes product, which launched in 2023. The development is a reported business milestone rather than a new product release.
Why it matters
Modal's growth points to rising demand for infrastructure that lets developers run generated code separately from their other systems. Its usage has tripled since its Series C five months earlier, a signal of how quickly that infrastructure category is scaling.
The figures are company-reported, with no independent audit cited in the source. Modal reports capacity of 1 million simultaneously running Sandbox environments and nearly 3 billion environments created since launch, but the source does not give independent benchmarks for those numbers.
The players
Modal
A cloud computing platform for AI and code workloads that operates compute capacity across more than 20 clouds, with its own scheduling, networking, storage, and container software.
Accel
A venture capital firm that led Modal's $750 million Series D financing.
Kleiner Perkins
A venture capital firm that participated in Modal's Series D alongside existing investors.
The details
Sandboxes let developers run generated code separately from other systems, isolating it so that code produced by software, including AI models, cannot affect production infrastructure. Modal's computing capacity spans more than 20 clouds, supported by internally developed scheduling, networking, storage, and container software, which lets it route workloads across providers.
Timeline
Sandboxes launched in 2023.
Modal's Series C financing took place five months before the Series D announcement; usage has tripled since.
Modal announced the $750 million Series D and its $1 billion run-rate milestone on November 2, 2026.
The Tech Race
Modal's Sandboxes product, launched in 2023, now accounts for $300 million of the company's run rate, which places it among the faster-growing isolated code-execution offerings in the market. The company's multi-cloud compute layer, built on its own scheduling and storage software, is the basis for that growth.
Developers building AI-driven applications can use Sandboxes to run generated code without it touching their production systems. The source does not state pricing or the availability timeline for new customers beyond the product's existing launch.
The takeaway
Watch whether Modal's run rate and Sandbox usage keep compounding after the Series D, since the company reports usage has tripled in five months. Track how the funding is deployed across its multi-cloud compute layer in the coming quarters.
Further reading
For more on the companies building this infrastructure, see the Startups section.
Source note: This article includes information reported by The AI Software Report.
