Higgsfield Raises $400 Million at a $5.4 Billion Valuation

Higgsfield has raised $400 million in a Series B that values the AI video company at $5.4 billion, a sharp escalation from its $1.3 billion valuation in January. The deal places a large private-market price on a platform selling AI-made marketing and media tools, while leaving open whether its reported annualized revenue can support the infrastructure demands of video generation.

DST Capital led the round. Growth Equity at Goldman Sachs Alternatives, Tribe Capital and Intel Capital participated, as did existing investors Accel, Menlo Ventures and GFT Ventures, according to Reuters. A separate report named Goldman Sachs, Intel and DST Global among new backers and said founder Alex Mashrabov confirmed the terms to the Financial Times.

The public accounts overlap on the major investors but use slightly different names for some of them. Reuters identifies DST Capital as lead investor and names the Goldman Sachs and Intel investment arms; the other report refers to Goldman Sachs, Intel and DST Global. The reports do not explain whether every label describes the same investing entity or affiliate.

The valuation move is unusually fast, though published accounts describe the interval differently. Reuters called the new price about four times Higgsfield’s value six months earlier; another account places the January financing eight months before this round. Both point to the same comparison: Higgsfield was valued at $1.3 billion after an $80 million January raise.

The reported growth behind the price

Higgsfield says its annualized revenue reached $700 million this month and that global users doubled since January to more than 30 million. Reuters described the company as an AI-native platform serving creators, marketers and studios, and said its enterprise customers span advertising and marketing, entertainment, and broadcasting.

The company names Soul 2.0 for image generation and Keyframes for storyboards among its proprietary tools. Those products sit beside its video offering, giving Higgsfield a broader creative-workflow pitch to marketers, studios and creators rather than a single-purpose consumer video app.

A separate report said Higgsfield’s annualized revenue was $700 million in August, up from $20 million a year earlier. It also said business customers now generate most of that revenue, compared with less than a quarter of sales in January. Those are company-reported figures, and the available accounts do not provide audited financial statements, customer-retention data, or a cost breakdown behind the reported growth.

The distinction between user reach and business revenue remains important. The company’s reported user figures measure broad platform reach, while its reported revenue-mix change concerns business customers. The public accounts do not say how many users pay, how many enterprise customers Higgsfield has, or how spending is distributed across them.

A business-oriented expansion plan

Higgsfield was founded in 2023 by Mashrabov, a former Snap executive, and launched publicly in 2025. The company turns text prompts into marketing videos for businesses, according to its account. It says it now serves more than 30 million users across 238 countries.

Its stated spending plan combines commercial expansion with product and infrastructure work. Reuters reported plans for global sales and management operations, infrastructure, research and hiring. Higgsfield also said the round would support compute-capacity reservations and build out enterprise products and security.

What Higgsfield says the round will fund

• Global sales and management operations, plus infrastructure, research and hiring.
• Compute-capacity reservations and enterprise products and security.

Growth meets the video cost question

The planned capacity reservations point to a basic constraint for AI video. One report says generating video requires substantially more computing power than producing text or images, and identifies compute capacity as a reason for Higgsfield’s raise. The company’s expansion could therefore increase both its reach and its need for infrastructure spending.

The same report contrasts Higgsfield’s rise with OpenAI’s Sora video app, saying OpenAI discontinued the app in April 2026 and planned to close its underlying API in September. That account attributes Sora’s retreat to heavy compute costs relative to app revenue. It does not establish Higgsfield’s own costs, margins, or prospects.

The stated spending plan has two separate jobs: capacity reservations support generation-heavy products, while sales, management, research and hiring support a wider commercial organization. The available reports do not disclose how the company will divide the money, how much capacity it expects to reserve, or which providers would supply it.

For now, the financing confirms that growth investors are willing to price Higgsfield as a major AI-video business on the strength of its reported expansion and enterprise ambitions. The harder evidence remains ahead: whether the company can turn a fast annualized pace, broad user reach and new compute commitments into durable revenue with sustainable costs.