Erik Bernhardsson: Agent Sandboxes Need Stricter Default Limits
Modal CEO Erik Bernhardsson explains how an exploit targeting Hugging Face forced a rethink of sandbox security and autonomous agent defense.
Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal
With Erik Bernhardsson · Sunday, October 25, 2026
Modal CEO Erik Bernhardsson discusses the structural dynamics of AI compute, contrasting the rigid multi-year capacity contracts sold across the industry with Modal's serverless aggregation model. He explores the economics of cloud capacity procurement, the explosive rise of ephemeral agent sandboxes, and why modern infrastructure requires rethinking developer experience, forward-deployed engineering, and security.
Key takeaways
- Attackers breached a user application hosted on Modal to target Hugging Face, using the compromised environment as an open springboard to gain internet access. Read more →
- NScale expanded its pipeline to hundreds of billions of dollars despite starting with almost zero physical capacity. Read more →
- Modal treats code review as optional, allowing engineers to ship directly to production unless they specifically request a second pair of eyes. Read more →
- Modal sandboxes started as an underused side project in 2023, but they now generate one third of the company's total revenue. Read more →
- Modal grew its forward-deployed engineering group from 4 to 24 engineers in a single year while deliberately hiring zero dedicated product managers. Read more →
5 articles from this episode
How NeoClouds Scale on Pre-Sold Compute and Wall Street Debt
Erik Bernhardsson explains how neoclouds secure billions in debt against multi-year compute contracts to buy GPUs without upfront cash.
Modal CEO Erik Bernhardsson on Making Code Reviews Optional
Modal CEO Erik Bernhardsson explains why code reviews hurt accountability, how AI agents write tests, and why managers are returning to IC roles.
Erik Bernhardsson Says Sandboxes Run for Eight Seconds
Modal CEO Erik Bernhardsson explains why persistent dev boxes fail AI agents and why ephemeral sandboxes now make up a third of Modal revenue.
Modal Grew to 24 Forward Deployed Engineers Without Any PMs
Modal expanded from 4 to 24 forward deployed engineers while skipping PM hires. Erik Bernhardsson explains how FDEs build lasting infrastructure.
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