Higgsfield secured $400 million at a valuation of $5.4 billion, which is four times its valuation from January.

      Higgsfield has secured $400 million at a valuation of $5.4 billion, with DST Global leading the funding round. Goldman Sachs, Intel Capital, and Liberty Global Tech Ventures participated, along with Tribe Capital, Smash Capital, Fifth Wall, Valor Capital, Mirae Asset Capital, and NTT DOCOMO Ventures.

      In January, the company had a valuation of $1.3 billion, marking a nearly fourfold increase in just eight months. In July, we reported that Higgsfield was in negotiations at a $5 billion valuation, and ultimately closed above that figure.

      The key figure to focus on isn’t the valuation itself. Higgsfield reported that its annualized revenue reached $700 million this month, a dramatic rise from about $20 million the previous year. It’s important to note that this is a run rate, which estimates future performance based on current figures. A company experiencing rapid growth may present favorable results using this metric, while one experiencing a slowdown may appear worse off.

      Nonetheless, the trend is clear. At a valuation of $5.4 billion against a $700 million run rate, the multiple is below eight, which is quite modest compared to AI valuations anticipated in 2026.

      The Higgsfield Series B reflects a shift in who its paying customers are. In January, less than a quarter of its revenue came from business clients, but now the majority is sourced from businesses. “The new funding will help us accelerate our move upmarket,” stated founder Alex Mashrabov to the Financial Times.

      This transition is noteworthy as OpenAI recently reported that its enterprise revenue has surpassed its consumer revenue. Two AI companies of differing sizes have made this transition within weeks of one another.

      Higgsfield claims to now serve 390 of the Fortune 500. In June, when we covered its enterprise agents, it stated that 78% of the Fortune 500 were its clients—essentially presenting the same information in two ways.

      The aspect worth emphasizing is not the fundraising itself, but how customers utilize the product. Since May, Mashrabov indicates that brands like Dollar Shave Club have been developing systems capable of generating multiple marketing videos daily, rather than just one per campaign.

      Reuters identifies the tools enabling this: Soul 2.0 for image generation and Keyframes for storyboards. The number of global users has doubled since January.

      Mashrabov explicitly mentions what this innovation replaces: social media teams are leveraging these tools to keep pace with continual online content, thereby reducing their dependency on costly creative agencies. This is the foundation of the business driving the valuation—replacing recurring agency fees with subscription services. Those affected by this shift are not highlighted in press releases.

      Additionally, Higgsfield operates a free training program called Higgsfield Academy, which it claims has attracted over 400,000 visitors and 67,000 completed lessons. Educating users on the tool is more cost-effective than selling it outright.

      Looking at the investors, Intel Capital provides computing resources, while Liberty Global Tech Ventures and NTT DOCOMO Ventures focus on connectivity and distribution. Smash Capital, co-founded by former Disney executive Kevin Mayer, also brings a media perspective to the table.

      Higgsfield characterizes these investments as strategic, encompassing computing, connectivity, distribution, media, and advertising, effectively supporting its supply chain and market access while raising capital.

      Accel, Menlo Ventures, and GFT Ventures have also invested, as has model and investor Natalia Vodianova Arnault, who will join as an adviser.

      Regarding the founder, Mashrabov previously led generative AI at Snap and co-founded AI Factory, the firm responsible for Snapchat’s face filters and Cameos, acquired by Snap in 2019. “At Snapchat, the face filters I built were mostly for entertainment among teens,” he mentioned to the FT. He explained that the company is now transforming how larger businesses approach marketing.

      The platform launched in 2025 and has attracted over 30 million users across 238 countries, with the United States being its largest market. Co-founder and CTO Yerzat Dulat is also running a STEM initiative across eight rural schools in Central Asia, emphasizing that the company's origins extend beyond Palo Alto.

      Three potential challenges loom: First, compute resources, which Mashrabov has acknowledged, are limited. He indicated that part of the capital raised will go towards securing these resources to ensure service reliability, a cost that could increase with success.

      Second, Higgsfield operates within a layer dependent on models it doesn’t own. Previous reporting highlighted China's advancement in AI video technology, creating reliance on the most economical providers available each quarter.

      Third, market acceptance poses a risk. Higgsfield has supported AI-generated films, which have alarmed parts of Hollywood concerned about job security in creative roles. Thus, a company offering cheaper, faster video production to brands might provoke apprehension within the industry.

      The market in question is significant. Goldman Sachs estimates that the creator economy encompasses around 50