Higgsfield raises $400M at $5.4B valuation — video AI is the reason

Higgsfield, an AI video and image generation startup founded by former Snap executive Alex Mashrabov in 2023, announced Monday that it has closed a $400 million Series B funding round at a $5.4 billion valuation. This marks a fourfold increase from its $1.3 billion valuation just eight months ago.

The company develops tools for creating AI-powered images and videos. Over the past year, Higgsfield has showcased AI-generated films at the Cannes Film Festival and in New York. Its product lineup includes Cinema Studio, designed for filmmakers to direct AI movies, and Marketing Studio, aimed at marketing and advertising teams.

In a press release accompanying the announcement, Higgsfield reported $700 million in annualized revenue and 30 million users across 200 countries. Enterprise adoption has been a significant growth driver: the startup now works with 390 of the Fortune 500 companies. Mashrabov told TechCrunch that he expects "enterprise adoption of video AI to become much more deeply embedded in everyday marketing and creative workflows."

The fresh capital will be used for hiring, product development, and — crucially — computing power. "Video is one of the most compute-intensive domains in AI," Mashrabov explained. One minute of video is equivalent to processing 60,000 words. Securing reliable compute capacity has become a necessary expense to remain competitive with rivals like Synthesia and Runway.

DST Global led the latest round, with participation from Goldman Sachs Alternatives, Valor Capital, and Tribe Capital, among others.