AI Image and Video Generation Corporation Higgsfield announced the completion of $400 million B round of financing, valued at $5.4 billion. Only eight months after the previous round of financing, the company ' s estimate was $1.3 billion at that time, with a significant increase in the valuation after the latest round.
Income and user size disclosure
Higgsfield was created in 2023 by former Snap executive Alex Mashrabov, providing mainly AI images and video generation tools. In its financing announcement, the company states that the current annualized income amounts to $700 million, with 30 million users, covering 200 countries and territories.
Over the past year, this company has been receiving attention for the launch of AI-generated films in Cannes and New York. Its products include Cinema Studio, which is oriented towards video production, as well as Marketing and Advertising for Services.
Business clients become growth directions
According to the company, business operations are becoming one of the fastest growing markets and are now working with 390 Fortune 500 companies. Mashrabov stated to TechCrunch that video AI is used by businesses in marketing and creative work processes and is expected to deepen further.
New investments to calculate and expand
This funding will be used for recruitment, product development and computing inputs. Mashrabov states that video generation is one of the highest energy-consumption directions in the AI field, processing the calculation of a minute video, roughly equivalent to processing 60,000 words.
In the context of increased competition in video-generated tracks, stable access to credit has become an important expenditure item for the companies concerned. Higgsfield currently faces peers such as Syrnthesia and Runway.
DST Global for the current round
This round of financing was led by DST Global, which also involved Goldman Sachs Alternatives, Valor Capital and Tribe Capital. Once the financing is completed, companies will continue to expand their product and infrastructure inputs.