Generative AI infrastructure startup fal has announced a $49 million Series B funding round, bringing its total funding to $72 million. The round was led by Notable Capital and Andreessen Horowitz (a16z), with participation from Bessemer Venture Partners, Kindred Ventures, and First Round. fal's previous funding rounds include a $14 million Series A led by Kindred Ventures and a $9 million seed round led by Andreessen Horowitz and Village Global.

Targeting the generative video frontier

After successfully establishing itself in the image generation space last year, fal is now positioning itself as the backbone for AI-driven video creation—what many consider generative AI's next major frontier. The company's proprietary inference engine was built specifically to handle the complexities of real-time video processing, where performance requirements are substantially higher than those for static media.

"When entire industries—advertising, entertainment, design, social media, e-commerce, gaming, and more—embrace AI, performance and reliability are everything," the company stated in its announcement.

Impressive Growth and Enterprise Adoption

In just one year, fal has:

  • Onboarded over 1 million developers.
  • Secured more than 50 enterprise customers.
  • Reached a point where it now processes over 100 million inference requests daily with 99.99% uptime.
  • Enabled billions of generated assets monthly across image, video, voice, and audio.

Notable customers include Quora (fal powers 40% of Poe's official image and video generation bots), Canva, Perplexity, and research labs like Black Forest Labs (fal was one of the first platforms to host the FLUX models).

What's Next?

The new funding will be directed toward three main initiatives:

  1. Infrastructure expansion, with plans to scale from thousands of Hopper GPUs to tens of thousands of Blackwell GPUs within a year.
  2. Enhancement of their model marketplace and ecosystem, with new endpoints for Whisper, Flux, and optimized Stable Diffusion implementations.
  3. Team expansion across engineering, research, and sales departments.

As generative media continues its rapid evolution, fal's focus on performance optimization—reportedly achieving up to 10x reductions in cost and latency—positions the company as a critical infrastructure provider in the emerging AI video generation landscape.