AI video startup Higgsfield quadruples valuation to $5.4B in just eight months

AI image and video creation platform Higgsfield announced Monday that it has closed a $400 million Series B funding round at a $5.4 billion valuation. That figure is nearly four times higher than the $1.3 billion valuation the company reached just eight months earlier.

Founded in 2023 by former Snap executive Alex Mashrabov, Higgsfield allows users to generate AI images and videos. Over the past year, the company drew attention for premiering AI-generated films at both the Cannes Film Festival and in New York. Its product lineup includes Cinema Studio, aimed at filmmakers directing AI-produced films, and Marketing Studio, built for marketing and advertising teams.

Rapid growth

In its funding announcement, Higgsfield reported $700 million in annualized revenue and 30 million users spread across 200 countries. Enterprise adoption has become a particularly strong growth driver, with the company now working with 390 of the Fortune 500 companies.

Mashrabov said he expects enterprise adoption of video AI to become far more deeply embedded in everyday marketing and creative workflows.

Funds earmarked for compute

The new capital will go toward standard business needs such as hiring and product development, but a significant portion will also fund compute capacity. Mashrabov noted that video is one of the most compute-intensive domains in AI, with a single minute of video requiring processing power comparable to handling 60,000 words of text. Securing reliable compute has therefore become a necessary cost to stay competitive against rivals such as Synthesia and Runway.

The round was led by DST Global, with additional participation from Goldman Sachs Alternatives, Valor Capital and Tribe Capital, among other investors.