…and we’re passing the savings to you. Starting today, we’re cutting the prices of CPUs and some of our most powerful GPUs by 15-30%. Here’s what’s changing:

Why are we cutting prices?

The GPU market has changed a lot over the past year. As many have speculated, the prices of top-of-the-line GPUs have fallen as competition in the supply pool has increased and more powerful GPUs have been launched. We’ve observed this across the entire cloud provider landscape.

This is a big win for the consumers and builders of AI applications, as well as for platform players like us who are making it easier to build on GPUs. We want to continue to offer competitive usage-based pricing, which is why we’re passing on the price cuts we’ve seen.

Additional update #1: Changing how we bill CPU/memory

If you reserve a specific amount of CPU cores or memory for a Modal Function, we will now charge you for max(reservation, usage) per running container. Previously, we charged you just for usage even if it was less than what you reserved. In addition, all Functions will now have a minimum default reservation of 0.125 CPU cores.

We’re making these changes so we can sustainably support CPU workloads, since we incur cost to procure reserved resources and spin up containers. Users who have long-running CPU jobs that use less than 0.125 cores/container will be most affected. If this applies to you, we recommend using concurrent inputs to leverage more cores per container. Contact us if you need help optimizing your CPU jobs!

Additional update #2: Changing our Team plan

The Team plan subscription will go up to $250/mo and now includes unlimited seats and $100/mo in credits. Over the last year, we’ve added features like region selection, custom domains, WebSocket support, cloud bucket mounts, and more, so we’re updating our pricing to reflect the additional value we’re providing. We’re also introducing unlimited seats and increasing the monthly included credits to encourage teams to expand their use of Modal.

When will these changes happen?

• If you’re new to Modal, the new pricing is in effect.
• If you’re an existing Starter plan user whose CPU bill won’t be impacted much or will decrease, the new pricing is in effect.
• If you’re an existing Starter plan user whose CPU bill will increase or a Team / Enterprise plan user, the new pricing won’t take effect until September. You can ask to be opted in early if you want to take advantage of the new pricing.

If you have any questions, don’t hesitate to reach out: support@modal.com.