Higgsfield Quadruples Valuation to $5 Billion in Six Months as AI Video Money Keeps Pouring In
Valued at $1.3 billion in January, now negotiating at $5 billion — AI video's acceleration hasn't peaked yet.
Three Key Takeaways
Higgsfield is in talks to raise $300 million to $500 million at a pre-money valuation of roughly $5 billion. That's nearly a fourfold jump from the $1.3 billion valuation set during an $80 million Series A extension led by Accel in January 2026. The deal has not been finalized, according to The Information.
Higgsfield's annualized revenue has surged from around $200 million to $500 million within the same six-month window. The company specializes in AI-generated video and image content and now has more than 20 million users. Founder Alex Mashrabov previously led Generative AI at Snap; his earlier startup, AI Factory, was acquired by Snap for $166 million in 2020.
The AI video valuation race keeps accelerating. Competitor Runway was valued at roughly $1.5 billion in 2024, while Pika sat at about $800 million. If Higgsfield closes at $5 billion, it would set a new ceiling for the sector — less than two years after the company was founded.
WangDou's Take
From $1.3 billion to $5 billion in six months, revenue jumping from $200 million to $500 million — impressive numbers, but do the division and the aggression is obvious: $5 billion on $500 million revenue is a 10x sales multiple for a company still burning through GPUs. Investors aren't pricing the current business; they're pricing the narrative that "AI video will eat the entire short-form content production market." The problem is that Runway, Pika, Kuaishou's Kling, and ByteDance's Jimeng are all sitting at the same table, and the actual moat in AI video generation is what, exactly? Not the model — models turn over every six months and everyone catches up. Not users — 20 million sounds big, but short-video users have approximately zero loyalty. The only plausible barriers are data flywheels and distribution channels, and those are precisely the things ByteDance and Snap can build in-house. Mashrabov came from Snap. He probably knows this better than anyone.
Source: The Information · GuruFocus · TechCrunch