AI inference provider Fal has secured a $1.3 billion Series F round led by Bessemer Venture Partners, doubling its valuation to $16 billion.
Alongside an earlier Series E led by Sequoia, the startup raised a combined $1.65 billion, highlighting the rapid scaling of infrastructure supporting open-source video, image, and audio models.
The new mammoth funding
The company raised $1,3 billion in its most recent funding round, known as Series F. It was led by investment firm Bessemer Venture Partners, with participation from Nvidia, Sound Ventures and T. Rowe Price. The move doubles the company's valuation from $8 billion in April.
In total, Fal announced two rounds of funding simultaneously, Series E and F, raising a total of $1,65 billion. The previous round, Series E, was led by Sequoia.
The demand for artificial intelligence
The massive funding comes at a time when demand for AI execution services is skyrocketing, especially for open-source software. Earlier this year, Fal had already surpassed $800 million in annual revenue.
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Similar companies in the industry, such as Baseten, Fireworks AI, and Modal, are also growing rapidly and raising large sums of money. However, net profits for these businesses remain limited, mainly due to the very high costs of purchasing or renting the powerful computers they need.
Fal was founded in 2021 by Burkay Gur and Gorkem Yurtseven.
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