Nvidia wins fast-growing AI startup Modal for new central processors
Modal, a cloud-computing startup that rents out computing power to AI developers, said it plans to start using Nvidia's new Vera central processor for the first time for hosting agents, the AI systems that can carry out long-running tasks for human users. Modal until now has run such work only on Intel and AMD chips.
Nvidia has secured a significant win in the fast-growing AI startup landscape by acquiring Modal, a cloud-computing company that rents out computing power to AI developers. This move comes as a promising sign for Nvidia's push into a market that has long been dominated by Intel and AMD. Modal, which just raised $750 million in a funding round led by Accel and valued at $15.75 billion, plans to utilize Nvidia's new Vera central processor for the first time.
The company's usage has tripled, and revenue has grown more than 15 times year-over-year, with projections to reach $1 billion in sales within the next year. During early tests, Nvidia's chip doubled the amount of work AI agents can accomplish, prompting Modal to adopt the new technology. Despite this shift, Modal intends to maintain a mixed fleet of chips, running Nvidia alongside its existing Intel and AMD offerings, deploying whichever hardware performs best for each job.
Nvidia anticipates generating at least $20 billion from Vera chip sales this fiscal year, entering a market valued at approximately $200 billion. Other notable AI players such as OpenAI, Anthropic, and Oracle are also expected to utilize Nvidia's chips.
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