Fal AI, a fast-rising multimodal artificial intelligence startup, has reportedly secured a new funding round that pushes its valuation beyond $4 billion, according to multiple sources familiar with the development.

The company, which provides hosting infrastructure for image, video, and audio AI models, raised approximately $250 million in the latest round. Major backers include Kleiner Perkins and Sequoia Capital, according to insider reports. Both venture firms, as well as Fal AI itself, declined to comment on the development.

The new investment comes just three months after Fal AI announced its $125 million Series C round at a $1.5 billion valuation, led by Meritech Capital. At that time, the company’s revenue had surpassed $95 million, with over two million developers actively using its platform—an impressive leap from a year earlier when its annual recurring revenue (ARR) was only $10 million and the user base stood at 500,000 developers, as reported by TechCrunch.

Fal AI’s recent surge is closely linked to the growing demand for multimodal AI applications, particularly in video content generation—a sector witnessing explosive consumer interest following the viral success of OpenAI’s Sora, which became one of the fastest-growing apps on the U.S. App Store. This rising demand underscores the growing market potential for companies like Fal AI that provide the backbone for media-centric AI development.

The company currently offers developers access to over 600 models across image, video, audio, and 3D domains. Its infrastructure, powered by thousands of Nvidia H100 and H200 GPUs, is optimized for high-speed inference. Developers can deploy their AI models through APIs, serverless hosting, or enterprise-grade compute clusters.

While Fal AI faces competition from established cloud giants such as Microsoft, Google, and CoreWeave, venture capitalists note that its focused expertise in multimodal and media AI gives it a distinct edge.

Its client list includes major names such as Adobe, Canva, Perplexity, and Shopify, with use cases ranging from advertising and e-commerce media generation to gaming content creation.

Founded in 2021 by Burkay Gur—a former machine learning lead at Coinbase and engineer at Oracle—and Gorkem Yurtseven, a former Amazon developer, Fal AI began by optimizing Stable Diffusion models for performance and scalability. Since then, it has expanded to become a key infrastructure provider for multimodal AI developers worldwide.

Before this latest round, Fal AI had raised nearly $200 million, according to PitchBook data. Its earlier investors include Bessemer Venture Partners, Kindred Ventures, Andreessen Horowitz, Notable Capital, First Round Capital, Unusual Ventures, and Village Global.
Source: Techcrunch