Key facts
- AI video startup Higgsfield raised $400 million in a funding round.
- Goldman Sachs and Intel were among the lead investors.
- The funding round values Higgsfield at $5.4 billion.
- Higgsfield's annual revenue reached $700 million in August.
- Business customers now account for the majority of Higgsfield's sales.
Goldman Sachs and Intel have backed AI video maker Higgsfield in a $400 million funding round, significantly increasing the startup's valuation to $5.4 billion. This marks a substantial jump from its $1.3 billion valuation just eight months prior, reflecting strong investor interest in generative AI products for businesses.
Founded in 2023 by former Snap executive Alex Mashrabov and Yerzat Dulat, Higgsfield launched its browser-based video platform in 2025. The technology enables users to generate and edit videos using AI, including converting text and images into clips and controlling camera movements without traditional equipment. The company has garnered over 30 million users across 238 countries, with the US being its primary market.
The recent surge in valuation is largely attributed to its growing base of business customers, who now constitute the majority of sales, a significant shift from less than a quarter in January. Annualized revenue has climbed to $700 million from approximately $20 million a year ago. Mashrabov stated the new capital will accelerate Higgsfield's expansion into targeting more corporate clients.
The investment will also be directed towards securing necessary computing capacity, which is a major cost for AI video generation, as well as enhancing enterprise products and security. Higgsfield faces increasing competition from major tech players like OpenAI with Sora and Google with Veo, alongside other AI video specialists such as Runway. The advancement of AI video technology is also raising concerns within the creative industries regarding its potential impact on jobs.