Higgsfield AI did not exist before March 2025. Fifteen months on, the video startup is in talks to raise money at a $5bn valuation, four times its worth at the start of the year.
The company is seeking $300mn to $500mn, The Information first reported. That would value it at $5bn before the new money, up from $1.3bn in January. DST Global, the fund built by early Facebook backer Yuri Milner, is among the investors in talks to join. The round has not closed.
The pitch is growth of a rare kind. Higgsfield crossed a $500mn annualised revenue run rate this month, according to reporting on the round. That is up from $200mn at the end of 2025. A platform barely a year old now sells at a half-billion-dollar annual pace. Roughly 70 per cent of that activity comes from enterprise customers.
That enterprise tilt is what separates Higgsfield from consumer novelty apps. Brands want ad clips, product shots, and social posts in hours rather than weeks, and they pay per seat and per render. That is a steadier business than viral demos. It is also why investors treat the revenue as durable rather than a passing craze, and why they are willing to pay up for it.
From Snapchat lenses to AI film
Alex Mashrabov founded Higgsfield in 2023. He ran generative AI at Snap and helped build the team behind Snapchat Lenses. The company’s tools turn text and images into video, and it says it generates about 4.5 million clips a day. TNW has covered its push into the enterprise. There, its marketing agents run on Nvidia hardware for hundreds of Fortune 500 brands.
The headline demo is a feature film. In May, a 15-person team used Higgsfield’s system to make Hell Grind, a 95-minute AI action fantasy. They finished it in 14 days for a reported cost under $500,000. Traditional production of that length runs to millions of dollars and many months. The point is not that the film is a classic. It is that it exists at all, made by a handful of people in a fortnight.
The money is chasing AI video
Investors have decided that generating images and video from a prompt is the next big line item. Higgsfield sits in a crowded field with Kling, Runway, Google’s Veo, and OpenAI’s Sora. It recently shared a Cannes stage with China’s Kling to show off AI-made ad work. The valuations reflect the hype. Higgsfield’s own worth has quadrupled in six months, echoing a wider surge across AI startups.
That surge runs on an unusual amount of capital. Venture firms are raising record AI funds, and Accel, which led Higgsfield’s January extension, sits among them. Higgsfield has moved fast through that money. It raised a $50mn Series A last September, an $80mn extension in January, and now a round many times larger. When capital is this cheap for anything labelled AI, a firm that shows real revenue rather than a demo can raise fast and high.
The catch under the numbers
There are reasons to stay careful. The round has not closed, and talks can fall apart or reprice. A revenue run rate is a snapshot, not a promise. It can drop as fast as it climbs if a cheaper rival or a better model appears. AI video is exactly the kind of market where that happens.
The wider worry is the flood. Cheap, fast video generation has already strained platforms. YouTube is cracking down on AI “slop”, and human creators are caught in the sweep. A tool that makes a feature film in a fortnight can also make an ocean of forgettable clips. Higgsfield is betting that enterprises will pay for the good version, not the noise.
For now, the growth is real and the timing is ripe. A startup that did not exist two years ago is raising at $5bn on the strength of half a billion in annual sales. Whether that holds depends on the one thing no valuation can fix: whether the videos keep improving faster than the price keeps falling.
Stephan is the sports journalist for the Maple Grove Report.
