AI image and video generation company Higgsfield has announced the completion of a $400 million Series B round, valuing the company at $5.4 billion. Just eight months after its previous funding round, when it was valued at $1.3 billion, the company’s valuation has significantly increased.
Revenue and User Base Disclosure
Higgsfield, founded in 2023 by former Snap executive Alex Mashrabov, primarily offers AI-powered image and video generation tools. According to the company’s funding announcement, it currently generates $700 million in annualized revenue, serves 30 million users, and operates in 200 countries and regions.
Over the past year, the company has gained attention for launching AI-generated films at Cannes and New York. Its products include Cinema Studio for film production and Marketing Studio for marketing and advertising teams.
Enterprise customers are becoming a growth focus.
The company said enterprise business is becoming one of the fastest-growing markets, with partnerships already established with 390 Fortune 500 companies. Mashrabov told TechCrunch that enterprise adoption of video AI in marketing and creative workflows is expected to deepen further.
New funds are directed toward computing power and expansion.
The funds will be used for hiring, product development, and computational power investment. Mashrabov stated that video generation is one of the most computationally intensive areas in AI, with the processing power required for one minute of video roughly equivalent to that needed for 60,000 words.
Amid intensifying competition in the video generation space, securing consistent access to computing power has become a significant expense for related companies. Higgsfield’s current competitors include Synthesia and Runway.
DST Global led this round.
This round of financing was led by DST Global, with participation from Goldman Sachs Alternatives, Valor Capital, and Tribe Capital. Following the funding, the company will continue to expand its investments in products and infrastructure.