Modal's sandboxes, once considered for shutdown, reportedly bring in roughly a third of revenue

Latent Space reports that Modal CEO Erik Bernhardsson said the company considered shutting down its sandbox product before demand from coding agents, background agents and reinforcement learning helped it grow to roughly a third of revenue. Bernhardsson says Modal rents GPU capacity on long-term deals and pools demand across customers to offer flexible compute. He also sees a risk if GPU prices fall after providers lock in expensive supply, though he does not expect a collapse soon.