Higgsfield AI Hits $1.3 Billion Valuation in Extended Funding Round

Higgsfield, an AI video startup based in San Francisco and Los Angeles, has reached a $1.3 billion valuation. The company, founded by Alex Mashrabov, a former Snap executive, extended its Series A funding round by selling $80 million more in shares. This brings the total raised in the round to $130 million. The move comes as Higgsfield reports a $200 million annual revenue run rate and more than 15 million users worldwide.

Background

Alex Mashrabov started Higgsfield in late 2023 after leaving Snap, where he worked as head of generative AI. Before that, Snap bought his earlier company, AI Factory, for $166 million in 2020. AI Factory built technology for real-time face filters on mobile phones, which became a key part of Snapchat. Mashrabov helped develop AI features like AR effects and chatbots that reached hundreds of millions of users.

At Snap, Mashrabov saw how hard it was for social media teams to make videos quickly. Traditional methods took too much time and money. He left in September 2023 to start Higgsfield with a small team of AI engineers. Early backers like Menlo Ventures helped get things going with a seed round. By spring 2025, the company launched its main tool.

Higgsfield started as a consumer app but shifted focus. The team built image and video generation tech, including character creation. They tested it with mobile users but found professionals needed better tools. Now, the platform lets social media marketers, creators, and brands make videos from text prompts. It mixes Higgsfield's own models with ones from OpenAI, Google, and others.

The company grew fast after launch. Five months in, it had 11 million users. Now, nine months later, user numbers top 15 million. Videos created daily hit 4.5 million. Revenue doubled from $100 million to $200 million run rate in two months.

Key Details

Higgsfield's tool makes short videos for social media ads and posts. Users type ideas, and the AI generates clips with effects like dolly shots or overhead views. This keeps visuals steady, fixing a common issue in AI videos. Brands use it to test many ad versions fast. Some top advertisers make over 10,000 creatives a year this way.

Growth and Users

Professionals drive most use now. Social media teams pick it for marketing. Creators make fashion videos or story-like content. Casual users still make fun clips, but the company highlights business side. One viral video showed fictional scenes with real people, but most work stays professional.

The team has grown to over 70 people. New hires include Taz Patel, a former ad exec from Perplexity. Funding comes from Accel, Menlo Ventures, and AI Capital Partners. The extra $80 million extends the Series A from September, when it closed at $50 million.

"We empower professional social media marketers to make videos with AI. Fully synthetically, without physical production." – Alex Mashrabov

Mashrabov points to organic use by big names. His mother even called about a Madonna post made with Higgsfield. This shows real pull from creators.

What This Means

Higgsfield's valuation puts it among fast-growing AI firms. It claims faster growth than OpenAI, Slack, or Zoom at similar stages. The $1.3 billion mark reflects demand for quick video tools in marketing. Brands need content for TikTok, Instagram, and more, but old workflows lag.

This shift changes video production. No need for cameras or crews for simple ads. AI handles it end-to-end, from idea to post. Higgsfield bets on social media ads as a huge market. Short-form drama and personalized clips open new doors.

Competition heats up. Tools from bigger players like OpenAI enter the space. But Higgsfield focuses on pros, blending models for better results. Revenue at $200 million run rate means real money flows in, not just users.

The funding lets Higgsfield build more. It will strengthen tech backbone for heavier use. More users mean more data to improve models. This could speed adoption in ads and content.

For workers, it means new skills. Marketers learn prompts like directors use shots. Higgsfield trains AI educators to spread the word. Jobs shift from shooting to guiding AI.

Investors see video AI as key. Deals like OpenAI's compute pacts show big bets. Higgsfield rides this wave, turning ex-Snap know-how into a billion-dollar firm.