Fal and Fireworks AI explore new funding rounds as AI inference valuations soar

Two of the fastest-growing companies in AI infrastructure are gearing up for funding rounds that would catapult their valuations into rarefied air. Fal, the multimodal model hosting platform, and Fireworks AI, which specializes in open-source model inference, are each exploring raises that could roughly double what they were worth earlier this year. The numbers behind the raises Fal secured $140 million in a Series D round back in December 2025, led by Sequoia, which valued the company at $4.5 billion. That was already a tripling of its valuation from just months prior. By March 2026, the company was reportedly targeting a $300 to $350 million raise at an estimated $8 billion valuation. Fireworks AI has moved even faster. The company raised $250 million at a $4 billion valuation in October 2025. Discussions around a potential round at a $15 billion valuation surfaced in May 2026. Then, in July 2026, Fireworks closed a $1.505 billion Series D that pegged its value at $17.5 billion. What’s driving these valuations isn’t just investor enthusiasm. Both companies are posting revenue numbers that actually justify the attention. Fal’s annual recurring revenue reportedly doubled to approxi...