AI inference startup Fal doubles its valuation to $16B as demand surges

Fal, a San Francisco startup that hosts and runs AI video, image, and audio models, raised $1.3 billion in a Series F round led by Bessemer Venture Partners with participation from Nvidia, Sound Ventures, and T. Rowe Price, valuing it at $16 billion, double its $8 billion valuation in April. The company announced its Series E and F rounds together, totaling $1.65 billion raised, with Sequoia leading the earlier round. Fal surpassed $800 million in annualized revenue earlier this year amid surging demand for inference services, though gross margins across the sector remain thin due to compute costs.