Multimodal AI startup Fal.ai has secured a new funding round valuing the company at over $4 billion, according to four people familiar with the deal. The company raised approximately $250 million in the latest round, with major investors including Kleiner Perkins and Sequoia, sources said. Fal.ai did not respond to requests for comment, and both Sequoia and Kleiner Perkins declined to confirm details. This follows a $125 million Series C round in late 2023, led by Meritech, which valued Fal.ai at $1.5 billion. At that time, the company reported revenue of $95 million and said its platform was used by over two million developers—marking a dramatic increase from just a year earlier, when TechCrunch reported annualized recurring revenue (ARR) of $10 million and a developer base of 500,000. Fal.ai specializes in providing infrastructure for developers building applications powered by image, video, audio, and 3D AI models. Its rapid growth reflects the surging demand for multimodal AI, particularly in video generation. The explosive popularity of OpenAI’s Sora—whose launch quickly propelled it to the top of the U.S. App Store, surpassing even ChatGPT’s early traction—underscores the market potential for such tools. The company hosts over 600 AI models across multiple modalities and operates a cloud infrastructure powered by thousands of Nvidia H100 and H200 GPUs, optimized for fast inference. Developers can access Fal.ai’s tools via API, serverless deployment, or enterprise-grade compute clusters. While competitors like Microsoft, Google, and CoreWeave offer similar hosting services, Fal.ai differentiates itself through its specialized focus on media and multimodal AI, a strength highlighted by investors such as Todd Jackson of First Round Capital. Fal.ai serves a diverse customer base, from individual creators to major enterprises including Adobe, Canva, Perplexity, and Shopify. Popular applications include generating advertising content, product visuals for e-commerce, and immersive assets for gaming. Founded in 2021 by Burkay Gur, a former machine learning leader at Coinbase and Oracle engineer, and Gorkem Yurtseven, a former Amazon developer, Fal.ai emerged from a vision to make personalized multimedia generation faster and more scalable. While others focused on large language models, the founders prioritized optimizing models like Stable Diffusion for performance and efficiency—later expanding their platform to host a broad range of multimodal AI tools. Prior to this latest round, Fal.ai had raised nearly $200 million, according to PitchBook. Its investor roster includes Bessemer Venture Partners, Kindred Ventures, Andreessen Horowitz, Notable Capital, First Round Capital, Unusual Ventures, and Village Global.