Higgsfield, the AI video and image generation startup founded by former Snap executive Alex Mashrabov, has raised $400 million in Series B funding at a $5.4 billion valuation — roughly four times what investors valued the company at just eight months ago.
The round was led by DST Global, with participation from Goldman Sachs Alternatives, Intel Capital, Tribe Capital, Valor Capital, Smash Capital, Fifth Wall, Liberty Global Tech Ventures, Mirae Asset Capital and NTT DOCOMO Ventures, according to the company's funding announcement. Higgsfield was valued at $1.3 billion in January, when it raised $80 million — meaning the valuation has more than quadrupled in less than a year.
The company says annualized revenue has reached $700 million, up sharply from a year earlier, with more than 30 million users across upwards of 200 countries and customers among more than 350 of the Fortune 500. Higgsfield, founded in 2023, builds AI tools aimed at professional and enterprise use cases rather than casual consumers, including a "Cinema Studio" product for filmmakers directing AI-generated footage and a "Marketing Studio" aimed at brand and social teams.
Betting on enterprise, not novelty
The pitch to investors is that AI video is moving from novelty demos to production workflows inside real marketing departments and agencies.
We expect enterprise adoption of video AI to become much more deeply embedded in everyday marketing and creative workflows.
Alex Mashrabov, Higgsfield founder and CEO
Video generation remains one of the more compute-intensive corners of generative AI, and Higgsfield says the new capital will go primarily toward hiring and infrastructure rather than marketing, as it works to keep pace with rendering costs at its current scale. The raise lands amid a broader resurgence of investor interest in AI video and image tools, a category that cooled in parts of 2025 before rebounding this year on the strength of revenue growth at a handful of breakout players, per TechCrunch's reporting on the deal.
Whether that revenue growth translates into durable margins is the open question hanging over the round. Compute costs for video generation remain steep, and enterprise contracts of the kind Higgsfield is touting often come with heavier support and customization burdens than consumer subscriptions — a tension investors in the sector are still working out how to price.
