Modal is targeting a $4.5 billion valuation, marking an 80% increase from its last funding round, as it seeks to raise between $150 million and $250 million. This valuation boost is underpinned by a significant revenue increase, with annualized figures reaching $300 million, five times higher than last fall. The growth is fueled by rising demand for AI Agent sandboxes, which are increasingly used by enterprises like Ramp and Lovable for developing Agents and reinforcement learning. Despite this growth, Modal faces potential profit margin pressures due to rising GPU costs driven by high demand from companies such as OpenAI.