Higgsfield secures $80M, hits $1.3B valuation as AI video generation explodes for marketers

AI video startup, Higgsfield, founded by ex-Snap exec, lands $1.3B valuation

Through an extension to its previous $50 million Series A round that closed in September, AI video generation startup Higgsfield has sold another $80 million worth of stock, bringing its total Series A to $130 million. The company says it has now hit a $1.3 billion valuation. Higgsfield offers a tool that allows consumers, creators and social media teams to create and edit AI-generated videos. The company was founded by Alex Mashrabov, former Head of Generative AI at Snap, who landed at the company after it bought his previous startup, AI Factory, in 2020 for $166 million. Mashrabov was a co-founder of AI Factory. Five months after Higgsfield launched its tool, it touted 11 million users and said it was a platform of choice for content creators. Nine months in, it has now reached over 15 million users and is on a $200 million annual revenue run rate, with that figure doubling from a $100 million trajectory in about two months, it says. The startup believes this puts it in rarified growth terrain, outpacing companies like Lovable, Cursor, OpenAI, Slack, and Zoom, according to its press release. To position itself less as an AI slop maker and more as a business tool, Higgsfield now emphasizes that the product is primarily used by professional social media marketers, "a major sign that the platform adoption has evolved beyond casual content creation." Of course, it's still an AI slop engine as well. Last month, Higgsfield was used to create a video called "Island Holiday" that depicted people mentioned in the Epstein files alongside fictional characters on "vacation" on Epstein's island. (Because of its offensive nature, we're not going to link to the viral X post.) On the other hand, its users also share plenty of projects centered on fashion and Hollywood-esque story telling, as well. Investors in the Series A extension include Accel, AI Capital Partners, Menlo Ventures and GFT Ventures.

AI video startup Higgsfield hits $1.3 billion valuation with latest funding

Jan 15 (Reuters) - AI video generation startup Higgsfield raised $80 million in new funding, valuing the company at over $1.3 billion, it told Reuters, as investors rush to develop the sector amid booming demand for the new technology. The Series A extension round included the participation of Accel, GFT Ventures and Menlo Ventures. The San Francisco-based company said it has reached $200 million in annualized revenue run rate, a projection of future revenue. The deal points to investor interest in AI companies that build applications for specific industries on top of foundational models. Rather than competing with OpenAI and Google, Higgsfield integrates third-party models into its platform. "We minimize the production tax so that, eventually, better stories and better ideas win," Alex Mashrabov, Higgsfield's CEO said in an interview. A GENERATIVE AI VIDEO BOOM The race in AI video generation is intensifying, with well-funded labs focused on building powerful foundation models while a growing number of startups, including Runway and Synthesia, target applications for filmmakers, advertisers and enterprise clients. The interest has also given rise to AI-native social media platforms like OpenAI's Sora. Higgsfield focuses on post-training models and builds a proprietary so-called "reasoning engine" to chain multiple AI systems together, helping maintain consistency of AI-generated characters and branding in marketing videos, Mashrabov said. Founded in 2023, Higgsfield launched its browser-based product in March 2025, allowing users to run end-to-end workflows within a single system. Social media marketers account for about 85% of the platform's usage. Jeff Herbst, managing partner at GFT Ventures and a Higgsfield board member, said demand for AI-generated content from social media marketers represents a market potentially larger than Hollywood. Higgsfield's rapid growth was a major reason GFT invested in it, he added. "They had scaled to around $10 million in ARR from zero in a matter of weeks, and we'd never seen anything like it," he said. Higgsfield will use the new capital to support its push into enterprise sales, an international expansion and further research and development, Mashrabov said. It also plans to grow its workforce from nearly 70 employees to about 300 by the end of the year. Reporting by Krystal Hu in San Francisco; Editing by Joe Bavier Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Krystal Hu Thomson Reuters Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, tech investments and AI. She has previously covered M&A for Reuters, breaking stories on Trump's SPAC and Elon Musk's Twitter financing. Previously, she reported on Amazon for Yahoo Finance, and her investigation of the company's retail practice was cited by lawmakers in Congress. Krystal started a career in journalism by writing about tech and politics in China. She has a master's degree from New York University, and enjoys a scoop of Matcha ice cream as much as getting a scoop at work.

Higgsfield raises $80M on $1.3B valuation to scale AI video platform - SiliconANGLE

Higgsfield raises $80M on $1.3B valuation to scale AI video platform Generative artificial intelligence video startup Higgsfield Inc. announced today that it had raised $80 million in new funding on a more than $1.3 billion valuation to support enterprise and international expansion of AI models built for commercial advertising, marketing content production and music videos, as well as continued research and development. Founded in 2023 and launched in April 2025, Higgsfield is a generative video technology startup that has as its goal the ability to make cinematic-quality video production accessible through AI. The company offers what it calls an AI-powered video reasoning engine that turns ideas into finished videos using a combination of proprietary logic and third-party models to maintain temporal consistency so characters, scenes, and visual elements stay coherent from clip to clip. Because it maintains consistency, the service is particularly useful for professional-grade short films, serialized content and high-impact social media ads. Higgfield's browser-based end-to-end workflow offering combines ideation, storyboarding, animation, editing and publishing in one interface. Users can start from sketches, text, or images and apply cinematic camera moves or presets, such as dolly shots and crane sweeps, without needing traditional equipment or editing expertise, lowering the barrier for creators and brands to produce polished video. The company also offers team collaboration and asset management tools for business and enterprise customers to let them scale video production at volume. The enterprise-focused features include project versioning, role-based access and integrations that support large creative teams working together on campaigns, training content and product launches. While the tech can create impressive AI video short films, according to Higgsfield, 85% of its usage comes from social media marketers and 80% of that segment is already delivering commercial work. Despite having launched nine months ago into a highly competitive space, Higgsfield has seen strong growth, with more than 15 million users worldwide creating 4.5 million video generations per day. The company claims that videos generated on its service have accumulated more than three billion social media impressions, positioning it among the most popular generative AI platforms by social media reach. Higgsfield has also hit a $200 million annual run rate, doubling from $100 million in two months. "Traditional video production wasn't built for the pace modern marketing demands," explains Alex Mashrabov, co-founder and chief executive officer of Higgsfield. "We built Higgsfield so video can be produced like software - fast iteration, tight creative control and repeatable output. In that world, a 16-year-old with taste can outperform a studio pipeline, because on social media the advantage goes to what earns attention and converts, not what took the longest to produce." The new $80 million in funding, an extension of Higgfield's original Series A round of $50 million, came from Accel Partners LP, AI Capital Partners (Alpha Intelligence Capital's US-based fund) and Menlo Ventures LP.