Fal, a San Francisco-based startup providing infrastructure for running artificial intelligence models, has raised $1.3 billion in a Series F funding round that values the company at $16 billion. The investment, led by Bessemer Venture Partners, doubles Fal’s valuation from $8 billion in April 2026 and brings its combined Series E and Series F fundraising to $1.65 billion.
According to a Bloomberg report, Nvidia, Sound Ventures, and T. Rowe Price participated in the latest financing. Fal announced both funding rounds on November 3, 2026, with Sequoia Capital having led the earlier Series E round.
Fal Expands Infrastructure for Generative AI Models
Founded in 2021, Fal operates a cloud platform that allows developers and businesses to run generative AI models for video, image, and audio creation. The company provides inference infrastructure, which processes requests through previously trained AI models to generate outputs without requiring customers to operate their own computing systems.
Fal supports developers working with open-source AI models, providing access to computing resources and tools for deploying applications. Its platform is designed to handle demanding workloads associated with generating images, videos, and audio through AI.
The startup has experienced significant revenue growth alongside increased demand for its infrastructure services. According to Bloomberg, Fal surpassed $800 million in annualized revenue earlier in 2026, reflecting the scale of its commercial operations.
The company was co-founded by Burkay Gur and Gorkem Yurtseven, who previously held engineering positions at major technology companies. Gur worked in machine learning at Coinbase and engineering at Oracle, while Yurtseven previously worked as a developer at Amazon.
AI Inference Providers Attract Major Investments
Fal operates in a market that includes inference infrastructure providers Baseten, Fireworks AI, and Modal. These companies offer cloud-based services that allow developers to deploy AI models without directly managing the underlying hardware.
Several providers have secured substantial funding at increasing valuations as demand for generative AI applications grows. However, inference companies face considerable operating expenses because purchasing or leasing the computing hardware required to run AI models can limit gross profit margins.
Fal said in its official funding announcement that its services are used by entertainment studios, advertising agencies, e-commerce businesses, game developers, and marketing teams. These customers incorporate image, video, and audio models into their production workflows.
The company plans to use the new capital to expand inference capacity, develop its research capabilities, and support additional generative media applications throughout 2027. Fal has not disclosed a detailed breakdown of how the funding will be allocated.
Featured image credits: Wikimedia Commons
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