Fal, a San Francisco-based startup that hosts and runs AI video, image, and audio models, raised $1.3 billion in a new funding round led by Bessemer Venture Partners, with participation from Nvidia, Sound Ventures, and T. Rowe Price. The deal values Fal at $16 billion, double its April valuation of $8 billion, Bloomberg reported. The company announced its Series E and F rounds together, noting that a combined $1.65 billion was raised across both; Sequoia led the earlier round.

The raise comes amid surging demand for inference services—the process of running an already-trained AI model to generate outputs—particularly from customers relying on open-source models. Fal surpassed $800 million in annualized revenue earlier this year. Inference rivals Baseten, Fireworks AI, and Modal are also growing quickly and raising large rounds at higher valuations, though people familiar with their financials say gross margins remain thin because buying or leasing compute is expensive.

Fal was co-founded in 2021 by Burkay Gur, a former Coinbase machine learning leader and Oracle engineer, and Gorkem Yurtseven, previously a developer at Amazon.