Higgsfield AI's rapid revenue growth drives a $5bn valuation talk, with DST Global among investors eyeing the enterprise-focused video generation platform.
A video startup that did not exist 15 months ago is negotiating a funding round that would value it at $5bn before new money. Higgsfield AI is seeking $300mn to $500mn at that price, quadrupling its January valuation of $1.3bn, according to reporting by The Information cited by The Next Web. DST Global, the fund founded by early Facebook backer Yuri Milner, is among the firms in talks to participate. The round has not closed.
The pitch rests on growth of a kind rarely seen even in the current AI boom. Higgsfield crossed a $500mn annualised revenue run rate this month, up from $200mn at the end of 2025. Roughly 70 per cent of that revenue comes from enterprise customers paying per seat and per render for ad clips, product shots and social posts delivered in hours instead of weeks.
That enterprise tilt separates Higgsfield from consumer novelty apps. Brands want predictable output and billing, not viral demos. Investors are treating the revenue as durable rather than a passing craze, which explains the willingness to pay a steep multiple.
Alex Mashrabov founded the company in 2023 after running generative AI at Snap and helping build the team behind Snapchat Lenses. The platform now generates about 4.5 million clips a day. Its marketing agents run on Nvidia hardware for hundreds of Fortune 500 brands, according to The Next Web.
The headline demo is a feature film. In May a 15-person crew used Higgsfield's system to produce Hell Grind, a 95-minute AI action fantasy, in 14 days for a reported cost under $500,000. Traditional production of that length runs to millions of dollars and many months. The point is not that AI replaces Hollywood tomorrow but that the cost curve for video creation is collapsing.
The market reaction
The valuation jump from $1.3bn to $5bn in six months implies investors are pricing in continued triple-digit growth and a defensible enterprise moat. That moat depends on two things: integration into brand workflows and the compute advantage of running on Nvidia infrastructure at scale. If either slips, the multiple compresses fast.
Historical context matters. The last wave of generative video startups — Runway, Pika, Sora — chased consumer mindshare first. Higgsfield went the other way, selling seats to marketing teams before the tech was demo-ready for TikTok. That choice looks prescient now that enterprise budgets are the only reliable revenue in the sector.
The question is whether the $500mn run rate can sustain the pace. The company has not disclosed net revenue retention or churn. Without those numbers, the $5bn price tag is a bet on trajectory, not a reflection of mature unit economics.
FAQ
What is Higgsfield AI's current valuation? The company is in talks to raise at a $5bn pre-money valuation, up from $1.3bn in January.
How much revenue does Higgsfield generate? It reached a $500mn annualised run rate this month, with 70 per cent from enterprise customers.
Who are the lead investors in the new round? DST Global, founded by Yuri Milner, is among the firms in talks to join. The round has not closed.
What makes Higgsfield different from other AI video tools? It focuses on enterprise workflows — per-seat and per-render pricing for brands — rather than consumer-facing demos.
