AI inference start-up Fal doubles its valuation to $16 billion

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Demand for running AI models is driving huge investment. TechCrunch reports that AI inference start up Fal has doubled its valuation to $16 billion after raising a $1.3 billion Series F

The round was led by Bessemer, with Nvidia, Sound Ventures and T. Rowe Price taking part. Fal announced its Series E, led by Sequoia, at the same time, bringing the total raised to $1.65 billion

The new valuation is up from $8 billion in April, according to Bloomberg, and the company's annualised revenue passed $800 million earlier this year

Fal hosts and runs video, image and audio AI models for developers. Its rivals include Baseten, Fireworks AI and Modal. The company was founded in 2021 by Burkay Gur, a former machine learning lead at Coinbase, and Gorkem Yurtseven, formerly of Amazon. Unnamed sources describe margins as thin

Doubling a valuation in seven months shows how strongly investors believe in AI infrastructure. Video and image generation are growing fast, and someone has to run all those models. Thin margins are a concern, though, because inference is a competitive business

Is the AI infrastructure boom sustainable? And which AI image or video tools do you use?

AI inference startup Fal doubles its valuation to $16B as demand surges | TechCrunchtechcrunch.com