Fal Secures $125M Series C for Multimodal AI, Hits $1.5B Valuation
San Francisco-based AI infrastructure provider fal has successfully closed a $125 million Series C funding round, elevating its valuation to $1.5 billion. The funding round, announced on July 31, 2025, was spearheaded by Meritech Capital, with significant contributions from Salesforce Ventures, Shopify Ventures, and Google's AI-focused fund, AI Futures. Existing investors, including Bessemer Venture Partners, Kindred Ventures, Andreessen Horowitz, Notable Capital, and First Round Capital, also participated, underscoring continued confidence in fal's vision.
This latest investment brings fal's total funding to $197 million across four rounds. Its prior funding milestones include a $9 million seed round in July 2022 led by Andreessen Horowitz, a $14 million Series A in September 2024 led by Kindred Ventures, and a $49 million Series B in February 2025 led by Notable Capital and Andreessen Horowitz.
Fal, founded in 2020 by Burkay Gur and Gorkem Yurtseven, specializes in providing enterprise-scale multimodal AI infrastructure. The company's proprietary serverless engine is designed to enable customers to run various AI models—private, open-source, or commercial—through a single, integrated platform. This infrastructure supports a wide range of generative media, including images, video, and audio, emphasizing high reliability, global performance, and minimal DevOps overhead.
The demand for multimodal AI infrastructure is rapidly expanding, with the market projected to grow from $1.0 billion in 2023 to $4.5 billion by 2028, reflecting a 35% annual growth rate. Multimodal AI systems, capable of processing and integrating information from various sources like text, images, audio, and video, are crucial for enterprises aiming to extract insights faster, automate complex tasks, and enhance customer experiences. Use cases for enterprise multimodal AI include customer support automation, intelligent enterprise search, compliance checks, product catalog management, and accelerating research and development.
Fal has demonstrated impressive growth, onboarding over 1 million developers and securing more than 50 enterprise customers, including prominent names like Quora and Canva. The platform processes over 100 million inference requests daily with 99.99% uptime, enabling billions of generated assets monthly across different modalities. This new funding will be directed towards three key initiatives: expanding its global cloud footprint to scale from thousands of Hopper GPUs to tens of thousands of Blackwell GPUs within a year, enhancing its model marketplace and ecosystem with new endpoints, and expanding its engineering, research, and sales teams.
The participation of major corporate venture arms in this funding round signals the strategic importance of AI infrastructure to their own enterprise offerings. Salesforce Ventures, for instance, has significantly expanded its AI investment, committing $1 billion to AI innovators in the past 18 months. Google's AI Futures Fund, launched to invest in and collaborate with ambitious startups, provides early access to Google DeepMind's latest AI models, resources, technical expertise, and equity funding. Meritech Capital is actively investing in AI startups, having led funding rounds for companies like Atlan and participated in rounds for Clay. Similarly, existing backers like Andreessen Horowitz have made substantial bets on AI, including a reported $20 billion fund focused on growth-stage AI companies, and Bessemer Venture Partners has earmarked $1 billion for AI investments. Kindred Ventures, a seed-stage firm, focuses on disruptive startups across various sectors, including AI. First Round Capital, also a seed-stage venture capital firm, has a diverse portfolio with investments in AI/ML.
Fal's successful Series C round positions it as a key player in powering the next generation of enterprise-scale multimodal AI, addressing the increasing demand for robust and efficient infrastructure in the rapidly evolving AI landscape.