Higgsfield, a US-based AI video generation startup, has closed a $400 million funding round at a $5.
The AMW Read
Highlights a major funding event for a leading AI video company, crossing significant valuation and revenue thresholds, with implications for competitive dynamics in the generative media segment.
Higgsfield, a US-based AI video generation startup, has closed a $400 million funding round at a $5.4 billion valuation, up from $1.3 billion just eight months ago. DST Global led the round, with participation from Goldman Sachs, Bala Capital, and Tribe Capital. The company, founded in 2023 by former Snap executive Alex Mashrabov, now claims an annual recurring revenue (ARR) of $700 million and over 30 million users across 200 countries. It also reports that 390 of the Fortune 500 companies use its AI systems for marketing and workflow needs.
This funding round positions Higgsfield alongside Runway as a leading US player in the AI video generation market, which is increasingly dominated by Chinese firms like ByteDance's Seedance and Kuaishou's Kling. Notably, Runway was valued at $5.3 billion in its last round, while Luma AI trails at $4 billion. Higgsfield differentiates itself through a strong B2B focus, targeting social media marketing, e-commerce, short-form UGC, and enterprise advertising, whereas Runway concentrates on Hollywood studios and traditional video editing ecosystems.
The new capital will be directed towards R&D, talent acquisition, and expanding compute infrastructure. CEO Mashrabov emphasized that video is one of the most compute-intensive areas of AI, and the company plans to use these resources to widen its competitive moat. Higgsfield also made headlines by open-sourcing the prompts and assets for its first AI animated film, KÖK BÖRÜ, which premiered at SIGGRAPH 2026. With this funding, Higgsfield is set to intensify the race for AI video dominance, challenging both US and Chinese rivals on capability and scale.
