Higgsfield, a firm specializing in video generation leveraging AI, revealed new funding of $80 million, estimating the enterprise’s worth at over $1.3 billion, reports Reuters. Investors are actively channeling capital into this area amidst escalating interest in AI technologies.
The augmented Series A investment was spearheaded by Accel, GFT Ventures, and Menlo Ventures. The San Francisco-based organization stated it has achieved $200 million in annualized recurring revenue (ARR), a metric indicating projected future earnings. The agreement illustrates investor attention toward enterprises developing industry-specific applications grounded in core AI models. Rather than directly rivaling OpenAI and Google, Higgsfield is incorporating external models into its personal platform.
“We curtail production expenses so that ultimately the superior narratives and concepts prevail,” Higgsfield CEO Alex Mashrabov conveyed in an interview.
The landscape of AI video generation is seeing increasing rivalry, with substantially funded laboratories constructing robust foundational models, and an expanding array of startups, including Runway and Synthesia, targeting implementations for moviemakers, advertisers, and business clientele. Interest also exists in AI-driven social media platforms akin to OpenAI’s Sora.
Higgsfield is concentrating on post-training models and is crafting its individual “reasoning engine” that merges various AI systems, aiding in preserving uniformity in personas and branding within promotional videos, Mashrabov clarified.
Established in 2023, the company released its browser-based offering in March 2025, enabling users to execute comprehensive workflows within a solitary system. Social media marketers comprise approximately 85% of the platform's user base.
Jeff Herbst, managing partner at GFT Ventures and a member of Higgsfield’s board, remarked that the need for AI-generated content from social media marketers could represent a market surpassing Hollywood in size. The company’s swift advancement was a primary factor behind GFT’s investment.
“They augmented ARR from zero to roughly $10 million in merely a few weeks, a phenomenon we have never witnessed prior,” Herbst added.
Higgsfield intends to utilize the recent capital to amplify corporate sales, pursue global expansion, and further advance research and development. The firm also anticipates increasing its staff from almost 70 to about 300 by year’s end.