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Latent Space · Thursday, October 22, 2026

Modal Rents Capacity Across 25 Clouds via Three-Year Deals and a Dedicated Procurement Desk

Erik Bernhardsson explains that to keep up with surging demand, Modal now works with roughly 25 different clouds, securing three-year deals with upfront payments and employing a dedicated four-person procurement desk.

personErik BernhardssoncompanyModal

The tape

2 quotes
“we work with almost twenty-five clouds at this point. And in many cases, um, in order to get the capacity we want, like, we, we have to go and do, you know, three-plus year deals, and you have to pay a meaningful amount of money up front.”
Erik Bernhardsson
“We've had to build a whole procurement, like, desk. Like, we have, like, four guys working full-time, basically.”
Erik Bernhardsson
Heard on Latent Space — “Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal CEO”, published Thursday, October 22, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via publisher transcript · $0.00
Modal Rents Capacity Across 25 Clouds via Three-Year Deals and a Dedicated Procurement Desk — Heardvine