Aug 24 (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)