Fal, a San Francisco-based AI infrastructure startup specializing in image, video and audio models, has raised $1.3 billion in its latest funding round at a $16 billion valuation. The Series F round was led by Bessemer Venture Partners, with participation from NVIDIA, Sound Ventures and T. Rowe Price, according to Bloomberg.

The company announced its Series E and Series F rounds together, bringing the combined funding raised across both rounds to $1.65 billion. Sequoia Capital led the earlier round. Fal’s latest valuation is double the $8 billion valuation reported in April.

Fal provides infrastructure that allows developers and businesses to run generative AI models through APIs without managing GPUs or configuring servers. Its platform supports more than 1,000 models across image, video, audio and 3D applications. The company also offers serverless deployment, dedicated GPU clusters and services to improve existing models through post-training.

The funding comes as demand for AI inference—the process of running trained models to generate outputs—increases. Fal said its annualized revenue surpassed $800 million earlier this year. Its customers include Canva, Perplexity and Quora.

Founded in 2021 by Burkay Gur, a former Coinbase machine learning leader and Oracle engineer and Gorkem Yurtseven, a former Amazon developer, Fal has grown rapidly. Its valuation rose from $1.5 billion in its Series C in July 2025 to $4.5 billion in its Series D in December 2025.

Fal plans to use the latest funding to expand its inference capacity and grow its team, supporting its broader ecosystem and research efforts in 2027.

The company is raising capital amid strong competition in AI inference infrastructure. Baseten, Fireworks AI and Modal have also secured major funding rounds at valuations ranging from $13 billion to $17.5 billion. However, the high cost of buying or leasing computing capacity continues to put pressure on inference providers’ gross margins.