AI inference startup Baseten reportedly raising $1.5B months after its last mega-round

AI inference startup Baseten is reportedly on the verge of closing a massive $1.5 billion funding round, which would value the company at $13 billion. This comes just five months after a $300 million Series E round that valued the company at $5 billion, and only nine months after a $150 million Series D. This accelerated growth highlights the intense investment activity in the AI inference space.

If confirmed, this latest financing would represent a 160% increase in valuation in less than half a year. However, reports indicate it is a split-priced round, a strategy companies use to inflate their stated valuation. Some investors are entering at a $13 billion valuation, while others are coming in at $11 billion. The round is reportedly co-led by Spark Capital, Sands Capital, Altimeter Capital, and Wellington Management.

Founded in 2019, Baseten is capitalizing on what has been dubbed the "inference gold rush," attracting substantial venture capital. Inference refers to the process an AI model undergoes after receiving a user prompt. Baseten aims to deliver rapid inference and manage costs by directing requests to the most suitable model, often prioritizing efficient, more affordable open-source alternatives.