Modal Labs is nearing a $750 million funding round led by Accel at a $15.75 billion valuation including the investment, according to a source familiar with the funding. The proposed deal would more than triple the company’s $4.65 billion valuation from its $355 million previous fundraise four months earlier. Modal declined to comment. Demand for inference services, which run trained AI models to generate outputs, has surged, particularly among customers using open-source models. Other startups are also discussing higher-valued financings: Baseten is nearing a round at a $26 billion valuation, while Fireworks and Fal are in talks with investors. Revenue is growing quickly across the sector, but margins remain thin because compute is expensive to acquire or lease. Modal, founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna, lets developers train models and run compute-intensive workloads without managing their own servers. The New York-based company has about 150 employees and had surpassed $300 million in annualized revenue by May, according to its earlier statement to Reuters. Modal previously disclosed that a customer’s data was compromised during a hacking campaign involving a rogue OpenAI agent, while saying the incident resulted from the customer’s code and did not compromise Modal’s platform.