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AI Startup Modular Raises $250 Million to Take On Nvidia’s Software Dominance

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AI startup Modular announced Wednesday it has raised $250 million in fresh funding, giving the company a valuation of $1.6 billion as it looks to loosen Nvidia’s grip on the AI computing ecosystem.

The round, which nearly tripled Modular’s valuation from two years ago, was led by the U.S. Innovative Technology Fund with participation from DFJ Growth and existing backers GV, General Catalyst, and Greylock.

Founded in 2022 by former Apple and Google engineers, Modular has built a platform that lets developers run AI applications across multiple types of chips without rewriting code for each one. Its clients include cloud providers such as Oracle and Amazon, as well as chipmakers Nvidia and AMD.

Nvidia’s dominance—holding more than 80% of the high-end AI chip market—is reinforced by its proprietary CUDA software, which locks in over 4 million developers worldwide. Modular positions itself as a neutral alternative, branding its approach the “Switzerland strategy.”

Co-founder and CEO Chris Lattner emphasized that Modular isn’t aiming to topple Nvidia directly. “What we’re focused on is not like pushing down Nvidia or crushing them. It’s more about enabling a level playing field so that other people can compete,” he said.

The company plans to sell its software directly to enterprises on a usage-based model and through revenue-sharing deals with cloud providers. Investors are betting that a multi-vendor AI hardware future is inevitable. DFJ Growth partner Sam Fort described Modular as “VMware for the AI era,” enabling workloads to move seamlessly across different chip vendors.

With around 130 employees, Modular plans to use the new capital to grow its engineering and sales teams and to expand beyond AI inference into the more demanding AI training market.

Meta expands Llama AI access to U.S. allies in Europe and Asia

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Meta Platforms said Tuesday it will make its Llama artificial intelligence system available to U.S. allies including France, Germany, Italy, Japan, and South Korea, as well as to NATO and European Union institutions. The announcement follows U.S. approval for federal agencies to use Llama earlier this week.

Llama, a large language model capable of processing text, video, images, and audio, will now be deployed more broadly as part of Washington’s effort to strengthen digital cooperation with democratic allies.

Meta said it will work with partners such as Microsoft, Amazon Web Services, Oracle, and Palantir to deliver Llama-based solutions abroad. The company emphasized that its models are released largely free for developers, a strategy CEO Mark Zuckerberg argues will drive innovation, reduce reliance on rivals, and keep engagement strong across Meta’s platforms.

The U.S. General Services Administration confirmed Monday that Llama would be added to its list of approved AI tools for federal use, meeting security and legal standards. By extending access to allies, Meta and Washington aim to align AI infrastructure across friendly nations at a time of intensifying global competition in artificial intelligence.

Amazon faces FTC in trial over claims it tricked millions into Prime subscriptions

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The U.S. Federal Trade Commission (FTC) opened its case against Amazon on Tuesday, accusing the company of deliberately making it difficult for customers to avoid or cancel Prime subscriptions, prioritizing revenue growth over consumer choice.

FTC’s case:

FTC attorney Jonathan Cohen told jurors that Amazon knowingly enrolled millions of people in Prime without clear consent, using deceptive sign-up practices and “dark patterns” in its cancellation system. “More members, more money,” Cohen said, arguing Amazon refused to simplify processes because it feared sign-ups would fall.

The agency says Amazon’s practices violated the Restore Online Shoppers’ Confidence Act (ROSCA), pointing to the so-called “Iliad flow” — a cancellation process requiring up to seven clicks to end a membership, despite misleading prompts suggesting the process was already complete. An FTC expert estimated 40 million customers were signed up without consent.

Prime subscriptions cost $14.99 per month, covering free expedited shipping and access to streaming and other perks. For some households, Cohen noted, that monthly charge meant “grocery money, gas, or the last bit to make rent.”

Amazon’s defense:

Amazon attorney Moez Kaba rejected the FTC’s claims, insisting the company clearly disclosed terms and made canceling straightforward. He accused regulators of cherry-picking evidence and misinterpreting internal documents. Kaba argued ROSCA’s requirements remain vague and compliance “shouldn’t feel like Goldilocks” guessing the right level of disclosure.

Broader crackdown:

The trial is part of a bipartisan push against “subscription traps” and hidden fees. The FTC also sued Uber and LA Fitness this year over similar cancellation hurdles. The case began during Trump’s presidency and advanced under Biden, showing rare regulatory continuity across administrations.

Stakes:

  • Damages: Potentially hundreds of millions of dollars plus fines of up to $53,000 per violation.

  • Reputation: A conviction could tarnish Amazon’s customer-first image.

  • Executives: Three senior executives, including Jamil Ghani, face personal liability after a judge ruled they could be held accountable for violations.

The trial is expected to last about a month, with testimony from customers and current and former Amazon staff. The outcome could set a precedent for how aggressively regulators can police dark patterns and subscription practices across the digital economy.