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 investors Accel, GFT Ventures, and Menlo Ventures. Higgsfield stated it has reached a $200 million annualized revenue run rate.
"We minimize the production tax so that, eventually, better stories and better ideas win," said Alex Mashrabov, the company's CEO, in an interview.
Mashrabov explained that 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. The platform allows users to run end-to-end workflows within a single system. Social media marketers account for approximately 85% of its usage.
Jeff Herbst, managing partner at GFT Ventures and a Higgsfield board member, commented on the demand. "They had scaled to around $10 million in ARR from zero in a matter of weeks, and we’d never seen anything like it," he said. Herbst added that demand for AI-generated content from social media marketers represents a market potentially larger than Hollywood, and Higgsfield's rapid growth was a major reason for GFT's investment.
Mashrabov said the new capital will support a push into enterprise sales, international expansion, and further research and development. The company also plans to increase its workforce from nearly 70 employees to about 300 by year's end.
The race in AI video generation is intensifying. Well-funded labs are focused on building powerful foundation models, while a growing number of startups target applications for filmmakers, advertisers, and enterprise clients. Investors are rushing to develop the sector amid booming demand for the new technology.