OpenAI. Gemini. Anthropic. xAI. Forgive us; we sometimes get so excited about the companies with the LLMs that we donβt pay as much attention to the products that make those models hum.
But investors havenβt forgotten.
This week, TechCrunchreported that Modal Labs is in talks for a funding round that would value it at $2.5B β more than double its valuation from just 5 months ago.
Modal does inference optimization, meaning it trains AI models to answer prompts more quickly, better, and (ultimately) for cheaper.
But the $2.5B valuation wouldnβt even make it the biggest company in the inference space.
- Last week, Baseten raised $300M and was valued at $5B.
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Fireworks AI was worth $4B as of October.
- One-time open-source vLLM recently took on $150M at an $800M valuation.
- SGLang last month renamed itself RadixArk and now has a reported $400M valuation.
(Psst: The latter two have yet to be hunted. Do your friendly neighborhood LLM a favor and let them know, will ya?)
Speaking of crazy high valuations, Nika is curious: With all the money being spent on AIβ¦ βWill the AI bubble burst?β