Higgsfield Valuation Quadruples to $5.4 Billion Following $400 Million Series B
Founded by former Snap executive Alex Mashrabov, the company reports 30 million users and partnerships with 390 Fortune 500 enterprises, with fresh capital earmarked for compute costs and product development.
Higgsfield, an artificial intelligence company specialising in video and image generation, has raised $400 million in a Series B funding round that values the firm at $5.4 billion. The investment marks a significant escalation in the company’s worth, quadrupling its $1.3 billion valuation established just eight months prior. The round was led by DST Global, with participation from Goldman Sachs Alternatives, Valor Capital, and Tribe Capital.
Founded in 2023 by former Snap executive Alex Mashrabov, Higgsfield has rapidly expanded its commercial footprint. The company now reports a user base of 30 million across 200 countries and has generated $700 million in annualised revenue. A key driver of this growth has been enterprise adoption, with Higgsfield stating it is currently working with 390 of the Fortune 500 enterprises.
The fresh capital is designated to support hiring, product development, and the substantial compute costs associated with AI video generation. Mashrabov noted that video is one of the most compute-intensive domains in artificial intelligence, equating the processing power required for a single minute of video to that of 60,000 words. Securing reliable compute capacity has become a critical expense for maintaining competitiveness in the sector.
Higgsfield’s tools, including Cinema Studio for filmmakers and Marketing Studio for advertising teams, have gained traction in creative industries. The company previously garnered attention by premiering AI-generated movies at the Cannes Film Festival and in New York. Mashrabov indicated that enterprise adoption of video AI is expected to become increasingly embedded in everyday marketing and creative workflows.
The company operates in a competitive landscape, identifying Synthesia and Runway as key rivals in the AI video generation space. The influx of funds from DST Global and other investors underscores the market’s confidence in Higgsfield’s ability to scale its infrastructure and capture further share in the evolving generative AI market.
