Higgsfield Hits $5.4 Billion Valuation: Is AI Video Back?

Higgsfield has raised $400 million at a $5.4 billion valuation, with Goldman Sachs, Intel, and DST Global as new backers. The AI video startup said the round will fund enterprise expansion and computing power.

The deal follows an $80 million raise in January that valued the company at $1.3 billion. That marks a four-fold jump in eight months. Founder Alex Mashrabov confirmed the terms to the Financial Times.

Enterprise Demand Drives the Valuation Jump

Higgsfield was founded in 2023 by former Snap executive Alex Mashrabov. The platform turns text prompts into marketing videos for businesses. It launched publicly in 2025 and now serves more than 30 million users across 238 countries.

Annualized revenue reached $700 million in August, up from $20 million a year earlier, according to the company. Business customers now generate most of that revenue. That marks a sharp shift from January, when they made up less than a quarter of sales.

That enterprise pivot mirrors a broader pattern across AI cloud providers like Nebius. Usage-backed revenue has drawn premium valuations from growth investors this year.

… Continue reading the full article at the original source below.