Nvidia wins fast-growing AI startup Modal for new central processors
NVDA•AI cloud startup Modal plans to use Nvidia’s Vera central processors for hosting AI agents, after tests showed the chips doubled the work agents could complete. Modal said it will run Nvidia chips alongside Intel and AMD hardware; Nvidia expects at least $20 billion in Vera sales this fiscal year.
1. Modal adds Nvidia chips
Modal plans to start using Nvidia’s new Vera central processor to host AI agents, after previously running that work only on Intel and AMD chips. Early tests showed Vera doubled the amount of work AI agents could complete, prompting Modal to make software changes to support the design.
2. Mixed chip fleet
Modal CEO Erik Bernhardsson said the company is not abandoning its existing suppliers. It will run Nvidia chips alongside Intel and AMD offerings and assign jobs to the hardware that performs best; the tests compared Vera with Intel and AMD chips already on the market.
3. Funding and sales targets
Modal raised $750 million last week in a funding round led by Accel at a $15.75 billion valuation. The startup said it is on track to record $1 billion in sales over the next year, usage of its services has tripled, and revenue has grown more than 15 times year over year. Nvidia has told investors it expects at least $20 billion in Vera sales this fiscal year, in a market it values at roughly $200 billion.
