Goldman Sachs and Intel have backed AI video maker Higgsfield in a $400m (£295m) funding round that has more than quadrupled the two-year-old company’s valuation since January.
The fresh funding values the startup at $5.4bn, up from $1.3bn just eight months ago, as investors pile into companies looking to turn generative AI into products businesses will actually pay for.
DST Global and Liberty Global also joined the round, alongside Tribe Capital, Smash Capital, Fifth Wall, Valor Capital, Mirae Asset Capital and NTT Docomo Ventures. Goldman invested through its Equity Growth fund.
Higgsfield was founded in 2023 by former Snap executive Alex Mashrabov and Yerzat Dulat and launched its browser-based video platform in 2025.
Its technology allows users to generate and edit videos using AI, including turning text and images into clips and controlling camera movements and visual effects without traditional filming equipment.
The company has since amassed more than 30m users across 238 countries and territories, with the US its largest market.
But its rapid valuation jump has increasingly been driven by businesses rather than individual creators.
Annualised revenue reached $700m in August, up from around $20m a year earlier, according to the company. Business customers now account for the majority of sales, compared with less than a quarter in January
Mashrabov told the Financial Times that the latest cash injection would help Higgsfield “accelerate our move upmarket”, as it targets more corporate customers.
Investors pile into AI video #
The company has increasingly pitched its tools at marketing teams looking to produce a steady stream of social media content without relying as heavily on traditional production companies and creative agencies.
Generating video requires significantly more computing power than producing text or images, making the cost of running the models one of the biggest hurdles facing the sector.
Higgsfield said part of the $400m round would therefore be spent securing computing capacity, alongside expanding its enterprise products and security.
The deal is set to give Higgsfield a growing roster of heavyweight tech and financial backers at a time when competition in AI-generated video is intensifying.
It competes with products including OpenAI’s Sora, Google’s Veo and specialist AI video companies such as Runway, as tech groups race to improve the quality and length of clips their models can generate.
The technology is also beginning to push beyond social media and advertising into film production, raising concerns across the creative industries over its potential impact on jobs.
Goldman Sachs has previously estimated that the global creator economy could grow from $250bn in 2023 to $480bn by 2027, while the wider shift towards short-form video has pushed brands to produce more content across social platforms