AI Startup fal Raises $1.65 Billion Through Series E and F at Reported $16 Billion Valuation

Key Takeaways:

• AI infrastructure company fal has raised $1.65 billion through two funding rounds, a $350 million Series E led by Sequoia Capital and a $1.3 billion Series F led by Bessemer Venture Partners.
• The new funding doubles fal’s valuation from $8 billion to $16 billion in November 2026.
• fal runs the backend GPU infrastructure and APIs that let developers generate AI video, images, audio, and 3D media at scale.

fal announced that it has raised $1.65 billion through Series E and Series F funding rounds, doubling its valuation to $16 billion in six months as demand for AI video and media generation surges.

Today, we’re announcing we raised our Series E & F rounds for a combined total of $1.65B. Our Series E was led by @sequoia and our Series F was led by @BessemerVP with continued investment from @nvidia.

We’re excited to push the boundaries of what’s possible even more next year and this funding will enable the team to build the way we want to.

— fal (@fal) November 3, 2026

Inside the $1.65 Billion Funding and Valuation Jump

fal confirmed the combined $1.65 billion raise and main investors. The total includes a $350 million Series E led by Sequoia Capital and a huge $1.3 billion Series F led by Bessemer Venture Partners, with NVIDIA returning as an investor in the Series F round.

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Founded in 2021, fal has seen valuation climb. The company was valued at $8 billion after Series E in April 2026 before doubling to $16 billion with the Series F.

How fal Makes Money Running AI Inference

Three Core Products for Generative Media

Training a model happens once, but inference, which is running that trained model every time a user asks for an image or a video, happens millions of times a day. fal provides the computing power and software plumbing that apps use to run media models.

Today, fal claims more than 2.5 million developers on the platform and makes money based on usage across three product lines. First, its Model APIs give developers a connection to more than 1,500 endpoints for image, video, audio, and 3D models from providers like Google, OpenAI, Black Forest Labs, ByteDance, Kling, and ElevenLabs, charging per output or GPU time.

Second, fal Serverless lets developers upload their own custom AI models and scales from zero to thousands of GPUs based on live traffic, charging by the second. Third, Compute service rents out clusters of NVIDIA H100, H200, and B200 GPUs for training and fine tuning jobs.

Why AI Video Is Driving Growth

Unlike companies such as Baseten, Fireworks AI, Modal, and Together AI, which focus on text and large language models, fal focuses on generative media. Because generating AI video takes more GPU memory and processing time than text or static images, usage from ad agencies, game studios, e commerce sites, and AI apps has driven up fal’s revenue. To stay faster than standard cloud rentals, fal writes custom CUDA kernels, caching tools, and inference engines to squeeze extra speed out of its chips.

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