AI inference provider Fal raises $1.3B Series F at $16B valuation

AI inference startup Fal has completed a $1.3 billion Series F funding round led by Bessemer Venture Partners, doubling its valuation from $8 billion in April to $16 billion. The company disclosed that it has raised a cumulative $1.65 billion across its Series E and F rounds, with annualized revenue exceeding $800 million. It primarily provides API hosting and inference services for AI video, image, and audio models. Despite soaring third-party inference demand, gross margins for such inference providers generally remain under pressure due to heavy compute costs.