Higgsfield Secures $400 Million Series B, Valuation Jumps To $5.4 Billion

Higgsfield announced Monday that it has closed a $400 million Series B round that values the company at $5.4 billion, a roughly fourfold increase since an earlier round eight months ago that placed the startup at about $1.3 billion. The financing was led by DST Global, with participation from investors including Goldman Sachs Alternatives, Valor Capital and Tribe Capital.

The startup, launched in 2023 by former Snap executive Alex Mashrabov, builds tools that let creators and brands produce images and moving-picture content using generative models. Its suites target both filmmakers and marketing teams, offering shortcut workflows for producing short films and promotional assets without traditional production shoots.

Higgsfield told investors it is generating about $700 million on an annualized basis and serves roughly 30 million users in about 200 countries. The company said 390 members of the Fortune 500 now use its services, or roughly four of every five firms on that list, signaling a tilt toward enterprise customers in recent months.

Mashrabov has said the company expects business clients to increasingly adopt AI video as part of routine creative and promotional work, moving the technology out of experimental pilots and into regular campaigns. He stressed to reporters that the shift toward corporate buyers has been an important growth driver for Higgsfield.

A significant slice of the new capital will go toward hiring and product development, company officials said, but much of it is earmarked for compute capacity. Generating realistic moving images demands substantial processing power — company materials equate a minute of generated footage to processing on the order of tens of thousands of text tokens — and industry analysts say access to dependable GPU time is becoming a decisive cost for firms in this sector.

The fresh funding places Higgsfield in closer competition with firms such as Synthesia and Runway as the market for AI-assisted video production matures. Observers note the company’s rapid revaluation raises questions about long-term margins, but its deepening roster of enterprise customers could help sustain growth as it scales computing and sales operations.