The Zhitong Finance App learned that according to reports, the artificial intelligence (AI) video generation company Higgsfield AI has recently completed a new round of financing of 400 million US dollars, and the post-investment valuation reached 5.4 billion US dollars.
According to the report, the main investors in this round include Goldman Sachs, Intel (INTC.US), DST Global, and Liberty Global-A (LBTYA.US). Additionally, organizations such as Tribe Capital, Smash Capital, Fifth Wall, and NTT DOCOMO Ventures also participated in the follow-up investment.
The AI platform was officially launched in 2025, and the annualized revenue reached 700 million US dollars in August this year, compared to only 20 million US dollars about a year ago. This funding round is just eight months away — when the company was founded by Alex Mashrabov, a former Snap (SNAP.US) executive, raised $80 million at a valuation of $1.3 billion, and the valuation more than tripled.
Higgsfield's business spans the three major fields of social media marketing, entertainment, and the creator economy, and a new generation of creators is using AI to create better visual content. Recently, however, the company's strategic focus has clearly been skewed towards corporate marketing customers. The platform has now attracted more than 30 million users from 238 countries and regions, with the US as its largest market.
Goldman Sachs expects the global creator economy, which covers approximately 50 million workers, to grow from $250 billion in 2023 to $480 billion in 2027, mainly driven by influencer marketing and short video advertising. Also, according to The Business Research Company data, global digital advertising spending is expected to reach 1.1 trillion US dollars by 2030, with a compound annual growth rate of 8.6%.
This round of financing will be used by Higgsfield to continue to increase investment in enterprise-grade products, security systems and computing capabilities.
According to information, the AI video generation circuit is currently becoming increasingly competitive — basic model laboratories continue to focus on cutting-edge technology, while startups such as Runway and Synthesia focus on providing specialized applications to filmmakers, advertisers, and corporate customers. However, in March 2026, OpenAI announced the shutdown of its video generation software Sora, adding a bit of a variable to this hot circuit.