Fal secures $1.65 billion in two funding rounds, valuation doubles in half a year: Too many clients, insufficient computing power.

Beating AI News: AI inference platform fal has completed Series E and Series F financing rounds, raising a total of $1.65 billion. The Series E round in April was led by Sequoia Capital, bringing in $350 million at a valuation of $8 billion. The Series F round in October was led by Bessemer, raising $1.3 billion at a doubled valuation of $16 billion, with NVIDIA also participating. fal primarily provides inference services for image, video, and audio generation models. Developers do not need to rent GPUs or deploy models themselves; they can call models such as Google Nano Banana and MiniMax via fal’s API. Its clients include enterprises like Adobe, Canva, and Shopify. In recent months, fal has also begun collaborating with model providers to improve generation quality and speed through post-training and inference optimization. The business has grown rapidly: fal’s annual recurring revenue rose from approximately $200 million in October 2025 to around $800 million as of September this year. However, the booming business has also brought challenges. Founder Burkay Gur revealed that this past summer, customer demand once outstripped computing power supply, forcing the company to impose rate limits on clients. The latest financing will be primarily used to purchase more computing power and expand its team.