Fal lands US$1.3 billion to expand AI computing capacity
The October financing valued the startup at US$16 billion, twice its April valuation, with Bessemer Venture Partners leading the round.
Bloomberg reported that Fal raised US$1.3 billion in an October funding round, giving the San Francisco startup a US$16 billion valuation. The company plans to put the financing toward additional computing resources and hiring for a workforce currently numbering 185.
Bessemer Venture Partners led the investment after previously backing Fal. The round also attracted funding from Sound Ventures, Nvidia, HOF Capital and T. Rowe Price. Fal's valuation had stood at US$8 billion in April.
Developers use Fal to run AI models for audio, images and video. Its focus is inference: operating models after training. A person familiar with the matter said the company's annualized revenue had reached US$800 million.
Chief executive Burkay Gur said summer demand outstripped Fal's capacity to serve customers, prompting usage limits. Alongside its hosting business, Fal has begun collaborating with video-model developers to fine-tune their models. Some of those arrangements provide Fal with licensing fees or a portion of revenue.
