Higgsfield, the AI video generation startup, announced on Monday that it has raised $400 million in a Series B funding round, propelling its valuation to $5.4 billion. This marks a fourfold increase from its $1.3 billion valuation just eight months prior, underscoring the explosive growth and investor confidence in the AI video space.
Founded in 2023 by former Snap executive Alex Mashrabov, Higgsfield empowers users to create AI-generated images and videos. Over the past year, the company has gained significant attention for premiering AI-generated films at Cannes and in New York, positioning itself at the forefront of creative AI applications. Its flagship tools, such as Cinema Studio for filmmakers and Marketing Studio for advertising teams, cater to a range of creative and commercial needs. In its funding announcement, Higgsfield highlighted $700 million in annualized revenue and a user base of 30 million across 200 countries.
The enterprise segment has become a key growth driver. Higgsfield reports that it now works with 390 Fortune 500 companies. Mashrabov told TechCrunch that the company expects "enterprise adoption of video AI to become much more deeply embedded in everyday marketing and creative workflows," signaling a shift toward integrating AI video tools into mainstream business operations.
The new capital will be deployed across hiring, product development, and infrastructure—particularly compute resources. "Video is one of the most compute-intensive domains in AI," Mashrabov explained. Generating just one minute of video requires processing power equivalent to handling 60,000 words of text. Securing consistent compute capacity is therefore essential to staying competitive with rivals like Synthesia and Runway. As 2026 unfolds, the demand for efficient, scalable compute solutions remains a critical battleground in the AI sector, and Higgsfield's investment in this area underscores its commitment to maintaining a technological edge.
DST Global led the round, with participation from Goldman Sachs Alternatives, Valor Capital, and Tribe Capital, among others. This strong backing reflects the growing investor appetite for AI companies that demonstrate both rapid revenue growth and the strategic foresight to address infrastructure challenges head-on.
via TechCrunch