Higgsfield Hits $5.4 Billion Valuation: Is AI Video Back?
Higgsfield has raised $400 million at a $5.4 billion valuation, with Goldman Sachs, Intel, and DST Global as new backers. The AI video startup stated the spherical will fund enterprise growth and computing energy.
The deal follows an $80 million elevate in January that valued the corporate at $1.3 billion. That marks a four-fold bounce in eight months. Founder Alex Mashrabov confirmed the phrases to the Financial Times.
Enterprise Demand Drives the Valuation Jump
Higgsfield was founded in 2023 by former Snap govt Alex Mashrabov. The platform turns textual content prompts into advertising movies for companies. It launched publicly in 2025 and now serves greater than 30 million customers throughout 238 nations.
Annualized revenue reached $700 million in August, up from $20 million a yr earlier, in accordance with the corporate. Business clients now generate most of that income. That marks a pointy shift from January, after they made up lower than 1 / 4 of gross sales.
That enterprise pivot mirrors a broader sample throughout AI cloud providers like Nebius. Usage-backed income has drawn premium valuations from progress buyers this yr.
“At Snapchat, the face filters I constructed have been primarily utilized by youngsters for leisure. At Higgsfield, we’re remodeling how bigger companies run advertising campaigns,” Mashrabov said.
Mashrabov stated manufacturers together with Dollar Shave Club now use Higgsfield to provide a number of movies a day, not one marketing campaign asset. That reduces reliance on exterior inventive companies.
AI Video’s Cost Problem Sank a Bigger Rival
Higgsfield’s rise stands in sharp distinction to the retreat seen elsewhere in AI video, after OpenAI shut down its Sora video app in 2026 following simply $2.1 million in lifetime income towards heavy money burn.
OpenAI discontinued the app in April, then confirmed it will shut the underlying API in September. The firm cited runaway compute prices towards only a small fraction of that in lifetime income.
Reports pegged Sora’s daily inference costs at an estimated $15 million, far outpacing the app’s whole income. Generating video calls for way more computing energy than producing textual content or photographs, making prices tough to regulate. Other video-generation rivals have additionally pulled again this yr as the identical value stress squeezes the sector.
Goldman and Intel Join a Crowded Field
Goldman Sachs invested by means of its Equity Growth fund. Intel’s own AI-linked bets have grown this yr as chipmakers chase stakes past core {hardware} gross sales. Other backers embody Tribe Capital, Fifth Wall, and NTT DOCOMO Ventures.
Goldman estimates the worldwide creator economic system may develop from $250 billion in 2023 to $480 billion by 2027. Digital advert spending is forecast to achieve $1.1 trillion by 2030, in accordance with The Business Research Company.
Mashrabov stated scarce computing energy was a driving purpose behind the elevate. The new funding will let Higgsfield reserve compute capability because it builds out enterprise merchandise and safety.
Whether Higgsfield can maintain its tempo as bigger labs push into video technology stays the subsequent take a look at for its valuation.
The publish Higgsfield Hits $5.4 Billion Valuation: Is AI Video Back? appeared first on BeInCrypto.
