Jan 15 (Reuters) – AI video generation startup Higgsfield has secured $80 million in new funding, elevating its valuation to over $1.3 billion, the company announced to Reuters. This investment reflects the surging demand for AI-driven technologies as investors flock to develop the sector.
The funding round, a Series A extension, saw participation from notable firms including Accel, GFT Ventures, and Menlo Ventures. Based in San Francisco, Higgsfield reported an impressive annualized revenue run rate of $200 million, indicating strong future earnings potential.
This latest funding round underscores a growing investor interest in AI companies that are building applications tailored to specific industries, utilizing foundational models rather than competing directly with giants like OpenAI and Google. Higgsfield differentiates itself by integrating third-party models into its platform.
“We minimize the production tax so that, eventually, better stories and better ideas win,” said Alex Mashrabov, Higgsfield’s CEO, in an interview. This strategy aims to foster creativity and innovation in AI-generated video content.
The competitive landscape of AI video generation is heating up, with numerous well-funded labs focused on developing robust foundational models. Startups like Runway and Synthesia are also emerging, targeting applications for filmmakers, advertisers, and enterprise clients. This escalating interest has even spurred the creation of AI-native social media platforms such as OpenAI’s Sora.
Higgsfield leverages what it describes as a proprietary “reasoning engine,” designed to integrate multiple AI systems. This technology maintains character consistency and branding in marketing videos, according to Mashrabov.
Founded in 2023, Higgsfield launched its browser-based product in March 2025, enabling users to execute end-to-end workflows within a single platform. Notably, social media marketers represent about 85% of the platform’s usage, highlighting the critical role of AI-generated content in digital marketing strategies.
Jeff Herbst, managing partner at GFT Ventures and a board member at Higgsfield, emphasized the significant market potential of AI-generated content for social media, suggesting it could surpass traditional entertainment markets like Hollywood. He remarked on the company’s rapid growth as a principal factor in GFT’s investment decision, stating, “They had scaled to around $10 million in ARR from zero in a matter of weeks, and we’d never seen anything like it.”
The newly raised capital will be instrumental for Higgsfield as it aims to enhance its enterprise sales efforts, expand internationally, and invest in further research and development. The company also plans to increase its workforce from nearly 70 employees to around 300 by the end of the year, signaling its ambitious growth trajectory.
As the demand for AI-generated video content continues to surge, Higgsfield’s strategic positioning and innovative technology could play a significant role in shaping the future of digital content creation.
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