AI startup Modular raises $100 million in General Catalyst-led funding

(Reuters) - AI startup Modular said on Thursday it had raised $100 million in a new funding round, led by venture capital firm General Catalyst, with participation from existing investors Google Ventures, SV Angel, Greylock and Factory.

Modular is among a clutch of AI startups that have benefited from a boom in the hi-tech sector following the runaway success of ChatGPT, attracting strong interest from venture capital firms and other investors.

The company did not disclose the valuation at which it raised capital in the new round, but a report by The Information put it at $600 million earlier this month. It had raised $30 million in June last year.

"This new funding will enable us to scale to the incredible customer demand we are seeing," co-founder and CEO Chris Lattner said in a statement.

Founded in 2022, Modular is looking to provide a cheaper alternative to AI development for enterprises through its software, bypassing the need for expensive and in-demand chips from tech companies like Nvidia

(Reporting by Jaiveer Singh Shekhawat in Bengaluru, Editing by Tasim Zahid)