Higgsfield raises its valuation to $5.4 billion in a new funding round and bets on enterprise video production
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Higgsfield has announced the close of a $400 million Series B funding round, bringing its valuation to $5.4 billion, a fourfold increase in just eight months compared to its previous $1.3 billion valuation. The round was led by DST Global, with participation from a broad group of investors including Goldman Sachs Alternatives, Valor Capital, and Tribe Capital, highlighting venture capital appetite for AI visual media generation tools.
Founded in 2023 by Alex Mashrabov, a former executive at Snap, the platform provides users with advanced capabilities to generate images and video using AI. The company drew wide attention over the past year after films produced with its tools were screened at the Cannes Film Festival and in New York, supported by a software portfolio that includes Cinema Studio, designed for filmmakers and directors creating cinematic work with AI, alongside Marketing Studio, aimed at marketing and commercial advertising teams.
To support its new valuation, the company pointed to broad financial and operational metrics, disclosing that its annual revenue reached $700 million and its user base surpassed 30 million across 200 countries.The enterprise sector has been a primary driver of this rapid expansion, with the company reporting that it currently works with 390 Fortune 500 companies, reflecting accelerating corporate adoption of these visual solutions.
In remarks to TechCrunch, founder Alex Mashrabov said the company expects enterprise adoption of AI video production to embed more deeply and consistently across daily creative and marketing workflows. He noted that the new capital will support standard operational requirements, such as hiring, talent acquisition, and ongoing product development, though the primary priority will be covering the compute bills required to train and run its models.
Mashrabov noted that video ranks among the most compute-intensive areas in AI, with processing one minute of video content equivalent to processing approximately 60,000 words of text.Given these heavy technical demands, securing stable and reliable compute capacity has become a necessary financial expenditure to remain competitive against other platforms in the market, including Synthesia and Runway, amid an accelerating race to meet rising demand for visual generation.