AI video generation startup Higgsfield has raised $80 million in new funding, the company told Reuters. The deal values the San Francisco-based firm at over $1.3 billion.
The Series A extension round saw participation from Accel, GFT Ventures, and Menlo Ventures. Higgsfield stated it has reached a $200 million annualized revenue run rate, a projection of future revenue.
Investors are rushing to develop the sector amid booming demand for the technology. The deal reflects interest in AI companies building applications for specific industries rather than competing directly with major foundation model developers like OpenAI and Google. Higgsfield integrates 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.
The race in AI video generation is intensifying. Well-funded labs focus on building powerful foundation models, while startups including Runway and Synthesia target applications for filmmakers, advertisers, and enterprise clients. Interest has also given rise to AI-native social media platforms like OpenAI’s Sora.
Mashrabov said Higgsfield focuses on post-training models and builds a proprietary "reasoning engine" to chain multiple AI systems together. This helps maintain consistency of AI-generated characters and branding in marketing videos.
Founded in 2023, Higgsfield launched its browser-based product in March 2025. It allows users to run end-to-end workflows within a single system. Social media marketers account for about 85% of the platform's usage.
Jeff Herbst, managing partner at GFT Ventures and a Higgsfield board member, said demand for AI-generated content from social media marketers represents a market potentially larger than Hollywood. He added that Higgsfield's rapid growth was a major reason GFT invested. "They had scaled to around $10 million in ARR from zero in a matter of weeks, and we’d never seen anything like it," Herbst said.
Mashrabov said the new capital will support a push into enterprise sales, international expansion, and further research and development. The company plans to grow its workforce from nearly 70 employees to about 300 by the end of the year.