--- title: "Modal raised $750 million at a $15.75 billion valuation; its GPU landlord WhiteFiber closed at $13.01" description: "Modal, a serverless AI cloud that owns no data centers, raised $750 million this week at 3.4 times its May valuation. WhiteFiber, the listed landlord that supplies its GPUs, carries about $1.0 billion of contracted work and closed at $13.01." publisher: "The Inference" section: "Deals" published: 2026-10-16T19:31:32.796Z modified: 2026-10-16T19:31:32.796Z canonical: https://theinference.org/article/modal-raised-750-million-at-a-15-75-billion-valuation-its-gpu-landlord-whitefiber-closed-at-13-01 language: en keywords: "AI Cloud, Funding, GPU, Public Markets, Data Centers" --- # Modal raised $750 million at a $15.75 billion valuation; its GPU landlord WhiteFiber closed at $13.01 > Modal, a serverless AI cloud that owns no data centers, raised $750 million this week at 3.4 times its May valuation. WhiteFiber, the listed landlord that supplies its GPUs, carries about $1.0 billion of contracted work and closed at $13.01. ## The tenant that owns nothing [Modal](https://theinference.org/markets/companies/modal), founded by Erik Bernhardsson and Akshat Bubna, runs a serverless platform: customers upload code and rent graphics processors without managing any machines [1][3]. This week it [raised a $750 million Series D](https://www.datacenterdynamics.com/en/news/ai-cloud-modal-raises-750m-in-series-d-funding-round/) led by the venture firm Accel at a $15.75 billion post-money valuation [1][2]. That is 3.4 times the $4.65 billion of its May Series C and more than 14 times its $1.1 billion Series B of September 2025 [1][2]. Usage has tripled since May and growth is above 15 times year over year, both chief-executive figures [1][3]. Annualized run-rate revenue, current revenue projected forward a year rather than audited sales, has passed $1 billion [1][3]. Modal owns no data centers. It is the orchestration layer, software that splits computing work across other people's machines, pooling capacity from 13 cloud partners including [WhiteFiber](https://theinference.org/markets/companies/whitefiber) [1]. *Chart: **Modal's private mark climbed from $1.1 billion to $15.75 billion in 13 months** Bar chart of Modal's post-money valuation at its last three funding rounds, rising from $1.1 billion in September 2025 to $4.65 billion in May 2026 to $15.75 billion in October 2026* *Post-money valuation at each announced round, in billions of dollars; the Series D was led by Accel. [1][2]* ## The landlord that carries the debt WhiteFiber, the GPU cloud and colocation operator founded in 2024 by bitcoin miner [Bit Digital](https://theinference.org/markets/companies/bit-digital), sits at the other end of that trade [1]. Colocation is renting powered, cooled space for customers' own machines, and WhiteFiber sells that alongside time on its own GPUs [4]. Its trailing net sales were $79.2 million [5], against a tenant reporting $1 billion of run-rate revenue [1]. On October 16 its [Nasdaq shares closed at $13.01](https://es.marketscreener.com/cotizacion/accion/WHITEFIBER-INC-199165709/); its thinly traded secondary Frankfurt listing fell 17.86 percent on the week and 28.57 percent this month [5]. Its [$310 million of convertible notes due 2032](https://pulse2.com/whitefiber-closes-310-million-convertible-notes-offering-as-it-targets-100-mw-of-new-ai-capacity-in-2027/) convert at $33.84, 2.6 times the current price [6]. *Chart: **WhiteFiber trades at a third of its June close, far below its convert price** Bar chart of three WhiteFiber dollar marks: the June 30 Nasdaq close of $38.85, the $33.84 conversion price of the 2032 convertible notes, and the October 16 Nasdaq close of $13.01* *WYFI prices in US dollars. June close per Bit Digital's second-quarter release, conversion price of the 2032 notes per Pulse 2.0, October close per MarketScreener. [4][5][6]* ## A billion-dollar backlog that lands slowly Remaining performance obligations, contracted revenue not yet recognized, stood near $1.0 billion on June 30 [4]. Of that, $57.7 million is expected in the rest of 2026, $136.7 million in 2027 and $105.1 million in 2028, the remainder thereafter [4]. Bit Digital, which consolidates WhiteFiber's results, posted [second-quarter revenue of $32.1 million](https://www.nasdaq.com/press-release/bit-digital-inc-announces-second-quarter-2026-financial-results-2026-08-13), up 15 percent from the prior quarter [4]. Since its previous call WhiteFiber signed more than $540 million of new multi-year cloud agreements, pointing to more than $200 million of annualized cloud revenue once fully deployed [4]. *Chart: **Seven-tenths of WhiteFiber's $1.0 billion backlog lands after 2028** Column chart of WhiteFiber's remaining performance obligations by expected recognition year: $57.7 million in the rest of 2026, $136.7 million in 2027, $105.1 million in 2028 and about $700.5 million thereafter* *Remaining performance obligations as of June 30, 2026, by expected recognition period; the after-2028 figure is the residual of the roughly $1.0 billion total less the three stated years. Source: Bit Digital second-quarter 2026 results. [4]* ## The holder took the haircut Bit Digital's 27,043,750 WhiteFiber shares were worth about $1.05 billion at the $38.85 Nasdaq close on June 30; at $13.01 they are worth about $352 million, barely above the parent's own $336.2 million of convertible notes [4]. "Our operating results improved through the quarter," chief executive Sam Tabar said. "Our valuation did not." The board is evaluating its options [4]. H.C. Wainwright and Jones [opened coverage at Buy in September](https://kalkine.com/news/technology/what-does-the-valuation-gap-flagged-by-management-mean-for-bit-digital-inc-nasdaqbtbt-and-its-whitefiber-stake), both third-party opinions [8]. Three tests are dated. The third-quarter reports, whose dates are unconfirmed, must show the backlog turning into revenue [7]. NC-1, WhiteFiber's new data-center campus, was expected to reach full billing across its 40 megawatts of contracted load in August [4]. Long-term leases covering more than 100 megawatts of 2027 capacity are targeted before the year ends [6]. The revenue line in those reports is the only figure that can reprice the stock and the stake at once. ## Takeaway Modal's mark tripled in five months while WhiteFiber, the listed landlord supplying its GPUs, closed at $13.01 with a $1.0 billion backlog that lands mostly after 2028; the revenue line is the only figure that can reprice the stock and Bit Digital's stake at once. ## Sources 1. [DatacenterDynamics, "AI cloud Modal raises $750m in Series D funding round", 16 October 2026](https://www.datacenterdynamics.com/en/news/ai-cloud-modal-raises-750m-in-series-d-funding-round/) 2. [SiliconANGLE, "AI cloud startup Modal raises $750M at $15.75B valuation", 14 October 2026](https://siliconangle.com/2026/10/14/ai-cloud-startup-modal-raises-750m-at-15-75b-valuation/) 3. [Vizaca, "Modal Raises $750 Million at a $15.75 Billion Valuation in 2026", 16 October 2026](https://www.vizaca.com/technology/modal-series-d-funding/) 4. [Bit Digital, Inc., "Bit Digital, Inc. Announces Second Quarter 2026 Financial Results" (press release via Nasdaq), 13 August 2026](https://www.nasdaq.com/press-release/bit-digital-inc-announces-second-quarter-2026-financial-results-2026-08-13) 5. [MarketScreener, WhiteFiber, Inc. quote page (Nasdaq: WYFI; Deutsche Boerse: D41), 16 October 2026](https://es.marketscreener.com/cotizacion/accion/WHITEFIBER-INC-199165709/) 6. [Pulse 2.0, "WhiteFiber Closes $310 Million Convertible Notes Offering As It Targets 100+ MW Of New AI Capacity In 2027", 25 August 2026](https://pulse2.com/whitefiber-closes-310-million-convertible-notes-offering-as-it-targets-100-mw-of-new-ai-capacity-in-2027/) 7. [Kalkine, "What Does the Valuation Gap Flagged by Management Mean for Bit Digital, Inc. (NASDAQ:BTBT) and Its WhiteFiber Stake?", 16 October 2026](https://kalkine.com/news/technology/what-does-the-valuation-gap-flagged-by-management-mean-for-bit-digital-inc-nasdaqbtbt-and-its-whitefiber-stake) 8. [Kalkine (AU), "Bit Digital (NASDAQ:BTBT): How Do Ether Holdings and WhiteFiber Shape Results?", 16 October 2026](https://kalkine.com.au/news/technology/bit-digital-nasdaqbtbt-how-do-ether-holdings-and-whitefiber-shape-results) --- Modal raised $750 million at a $15.75 billion valuation; its GPU landlord WhiteFiber closed at $13.01 — The Inference. Canonical: https://theinference.org/article/modal-raised-750-million-at-a-15-75-billion-valuation-its-gpu-landlord-whitefiber-closed-at-13-01