AI video startup Higgsfield eyes $500M raise at $5B valuation
What's the deal? Higgsfield, the AI video startup, is in talks to raise $300 million to $500 million at a $5 billion pre-money valuation.
That would be four times its $1.3 billion mark from January. DST Global, the fund built by early Facebook backer Yuri MilnerDealroom has a profile for this one. Try Dealroom →, is among the investors circling the round, first reported by The Information.
The company crossed a $500 million annualised revenue run rate in June 2026, up from about $200 million at the end of 2025. Roughly 70% of that comes from enterprise clients.
Why now? Higgsfield did not exist before March 2025. Fifteen months later, it is selling at a half-billion-dollar annual pace, one of the fastest ramps in software history.
Rivals have also cleared the field. OpenAI's Sora shut down in April 2026, and Runway pivoted toward "world models," leaving Higgsfield the commercial lead.
Founder Alex MashrabovDealroom has a profile for this one. Try Dealroom → ran generative AI at Snap, which bought his previous startup, AI Factory, for $166 million in 2020.
What could go wrong? The round has not closed. Talks can fall apart, and a fourfold markup in six months invites hard questions about durability.
Chief among them: whether usage-based revenue annualises the way the run-rate math suggests. It remains unclear who leads the round or how much is primary versus secondary.
The signal: Investors have decided AI video is the next big line item. Higgsfield competes with KlingDealroom has a profile for this one. Try Dealroom →, Google's Veo, and others in a crowded, richly funded field.
The enterprise tilt is the tell. Brands paying per seat and per render for ad clips and product shots look far steadier than viral consumer demos.
Higgsfield has moved fast through cheap capital: a $50 million Series A in September 2025, an $80 million extension in January 2026, and now a round many times larger. When real revenue shows up, the money follows.
Read more: The Next Web, The Information, TechCrunch
