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Back to Inside fal’s $1.65B Series E & F Led by Sequoia & Bessemer, with Burkay Gür & Gorkem Yurtseven.

Why Can't a New AI Model Buy Its Own Inference Compute?

fal co-founders Burkay Gür and Gorkem Yurtseven say a lab with a new model has to plan inference compute before the launch. fal sits between model providers and the studios and application teams that consume the models, so it sees supply and demand on both sides. Compute is scarce enough that a successful model often cannot be served on hardware the lab buys alone. Partnering with an inference provider for the launch is the practical path. fal works closely with model providers. Customers usually run several models at once and time their own product releases to model releases.

Someone has to reserve capacity ahead of time. Otherwise the compute goes to coding agents or to whoever is spending more. Buying compute in advance lets fal serve both the model providers and the applications built on them. Advance buying has become fal's role over the last couple of months, because compute is so hard to come by.

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Inside fal’s $1.65B Series E & F Led by Sequoia & Bessemer ·

Sourcery

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  1. Why Is Generative Media One of Only Three Product-market Fits in AI?fal co-founders Burkay Gür and Gorkem Yurtseven say AI has three product-market fits: search, coding agents, and generative media.
  2. Why Did Fal's Image Business Come Back?fal co-founders Burkay Gür and Gorkem Yurtseven say about half of fal's revenue now comes from video models and half from image models.
  3. Who Pays $5 for a Five-second AI Video?fal co-founders Burkay Gür and Gorkem Yurtseven say a five-second video priced at five dollars still found essentially infinite demand.
  4. How Did Fal Move From Data Infrastructure to Image Models?fal co-founders Burkay Gür and Gorkem Yurtseven say fal started in 2021 as a compute company, before the current AI wave.
  5. Why Did Coinbase Make Candidates Pass a Crypto Quiz?Burkay Gür says Coinbase made candidates pass a crypto quiz posted on Reddit before anyone on the team would take a phone call.
  6. Why Does Fal Have No Pure Managers?fal co-founders Burkay Gür and Gorkem Yurtseven say fal has no pure managers and does not plan to add them.
  7. Why Does Fal Send Engineers Home on Weekends?fal co-founders Burkay Gür and Gorkem Yurtseven say fal looks for agency, hunger, and humility in engineers.
  8. How Did Fal Get Its Name?fal co-founders Burkay Gür and Gorkem Yurtseven say fal is the initials of features and labels, two old machine-learning terms from before the current AI wave.
  9. Has AI Taken Hollywood Jobs Yet?fal co-founders Burkay Gür and Gorkem Yurtseven say AI has had zero impact on Hollywood labor so far.

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