"Fal.ai, a startup that hosts image, video, and audio AI models for developers, has closed a new round valuing the company at over $4 billion, four people familiar with the deal said. The company raised approximately $250 million, two of the people said. Major investors in the round are Kleiner Perkins and Sequoia, according to our sources. Fal didn't respond to a request for comment. Sequoia and Kleiner Perkins declined to comment."
"The new round is coming less than three months after Fal announced a $125 million Series C at a $1.5 billion valuation led by Meritech. At that time, the company's revenue crossed $95 million and it's platform was used by over two million developers, Todd Jackson, a partner at First Round Capital wrote on LinkedIn. That was massive growth from a year ago, when TechCrunch reported Fal had $10 million in annualized recurring revenue (ARR) and 500,000 developers."
"Since Fal provides the infrastructure layer for multimodal AI models (as well as media-specific ones), the company's explosive growth is directly tied to the user adoption of applications built on top of it. And multimodal AI is in heavy demand right now, especially video, as evidenced by the soaring popularity of OpenAI's Sora, which surged to the top of the U.S. App Store even faster than ChatGPT did. This massive consumer demand for applications like Sora underscores the market potential of Fal's offering."
Fal.ai closed a financing round that values the company at over $4 billion after raising roughly $250 million, with Kleiner Perkins and Sequoia as major investors. The company previously raised $125 million at a $1.5 billion valuation and reported revenue surpassing $95 million while serving over two million developers. Annualized recurring revenue a year earlier was about $10 million with 500,000 developers. Fal.ai hosts more than 600 image, video, audio, and 3D models, operates thousands of Nvidia H100 and H200 GPUs, and offers APIs, serverless hosting, custom model tools, and enterprise compute clusters. The company competes with cloud providers but emphasizes media and multimodal specialization.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]