AI infrastructure startup fal secured $125 million in new funding which increased its value to $1.5 billion because organizations need tools that support multimedia generative models at an accelerated rate.
The Series C funding round received its lead investment from Meritech Capital while Salesforce Ventures and Shopify Ventures and Google’s AI Futures Fund provided additional support. The funding round received support from both existing investors Andreessen Horowitz and Bessemer as well as new investors.
The San Francisco-based company fal enables enterprises to operate image video and audio models which represent a growing interest in multimodal AI solutions. The models surpass text generation capabilities to perform tasks that include product image creation and digital ad design and visual prototyping.
The AI boom initially started with text-based tools like ChatGPT but fal found success by leveraging the growing popularity of visual AI. The OpenAI Studio Ghibli-inspired image generator served as a pivotal moment when ChatGPT reached 150 million weekly users.
The majority of fal’s business clients implement the platform for commercial purposes including ecommerce and media and marketing applications. The obtained capital will support employee recruitment and system infrastructure development to help fal expand its operations in this fast-changing market.
Businesses competing to implement AI solutions beyond chatbots receive investments from investors who support providers like fal that offer scalable deployment solutions for advanced non-text AI tools across different industries.
