Higgsfield is in talks to raise $300-500 million at a roughly $5 billion pre-money valuation — about 4x where it was priced just six months earlier — after its annualized revenue quadrupled from $200 million to $500 million between December 2025 and June 2026. The round, first reported by The Information, has not closed, and DST Global is reportedly among the investors discussing terms. What has closed: $130 million across a Series A and extension that valued the AI video-generation startup at $1.3 billion in January 2026.
Here's what's confirmed, what's still just talk, and why the trajectory matters.
What is Higgsfield?
Higgsfield is an AI video-generation platform founded in October 2023 by Alex Mashrabov, along with co-founders Yerzat Dulat and Mahi de Silva. Mashrabov previously led generative AI at Snap, having landed there after Snap acquired his prior startup, AI Factory, for $166 million in 2020 — technology that went on to power Snapchat's face filters.
Higgsfield's pitch is "cinematic camera language" for AI video: rather than generic text-to-video, it gives creators controls modeled on real film techniques — camera moves, angles, motion — to make AI-generated clips look directed rather than generated. It launched aimed at consumer creators and social media teams, then pivoted hard toward enterprise: the company now says roughly 70% of its revenue comes from enterprise customers on a per-seat, per-render subscription model, and it reportedly generates around 4.5 million video clips a day.
The growth curve is the real story. Higgsfield hit 11 million users and $50 million in annualized revenue within five months of launch. By month nine it had 15 million users across 240 countries and $200 million ARR. By June 2026, that run rate had reportedly hit $500 million.
The raise / valuation
What's actually closed, confirmed by multiple outlets including TechCrunch:
- $50 million Series A — September 2025, led by GFT Ventures, at a $1 billion valuation
- $80 million Series A extension — January 2026, led by Accel, at a $1.3 billion valuation
- Total raised to date: $130 million
What's reportedly in progress, first reported by The Information as of early July 2026:
- Higgsfield is seeking $300-500 million in new funding
- The round would value the company at roughly $5 billion pre-money — about 4x its January valuation
- This round has not closed, and terms could still shift
The magnitude of the jump — $1.3B to a reported $5B in six months — is unusual even by 2026's AI funding standards, and it tracks almost exactly with the revenue growth: ARR also roughly quadrupled (from $200M to $500M) over the same window. Investors appear to be pricing the round on trailing revenue growth rather than pure narrative, which is a meaningfully different bet than most AI video valuations right now.
Who is investing in Higgsfield?
Confirmed investors across the closed rounds include:
- Accel — led the $80M Series A extension
- GFT Ventures — led the original $50M Series A
- Menlo Ventures
- AI Capital Partners
- Additional participants in the original Series A: BroadLight Capital, NextEquity Partners, and Alpha Square Group
For the new round still in talks, DST Global — Yuri Milner's fund, known for early bets on Facebook, Spotify, and Airbnb — is reportedly among the investors discussing participation. No other names have been confirmed publicly, and Wortins will update this post if the round closes with a finalized investor list.
What the money is for
Neither Higgsfield nor its investors have issued a specific public statement on use of funds for the new round, so this should be treated as inference rather than fact. Based on the company's own growth pattern and its enterprise pivot, the likely uses are:
- Compute costs for video generation at scale — 4.5 million clips a day is a heavy inference workload, and video models are far more compute-intensive per generation than text or image models
- Enterprise go-to-market — building out sales and account management to keep growing the 70%-enterprise revenue mix
- Model and product development — continuing to differentiate on "cinematic control" as competitors like Runway, Kling, and Sora-based tools race on raw video quality
We'll flag this section as unconfirmed until Higgsfield or its investors state funding use directly.
Why it matters
Higgsfield's trajectory is a useful stress test for how AI application-layer companies are actually being valued in mid-2026, as opposed to how infrastructure players are valued.
- Revenue growth is doing the work, not just hype. A 4x valuation jump in six months looks aggressive until you see ARR also roughly quadrupled in the same period. That's a different story than a valuation markup driven purely by model releases or investor FOMO.
- AI video is consolidating around a few fast movers. Higgsfield's climb from launch to a reported $5B conversation in under three years puts it in the same conversation as Kling AI and Runway as one of the category's clearest winners — even though the space is crowded with well-funded competitors.
- Enterprise is where the durable revenue is. The shift to 70% enterprise revenue, on a per-seat/per-render model, suggests Higgsfield is optimizing for retention and pricing power rather than consumer virality — a pattern showing up across the AI video startup funding landscape in 2026.
Until the round officially closes, the $5 billion number remains a reported target, not a fact. But the revenue numbers behind it are independently corroborated across multiple outlets, which is more than can be said for a lot of the valuation chatter in AI right now.
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