{"slug": "goldman-and-intel-back-5-4bn-ai-video-startup", "title": "Goldman and Intel back $5.4bn AI video startup", "summary": "Goldman Sachs and Intel have backed AI video maker Higgsfield in a $400m funding round that values the two-year-old company at $5.4bn, up from $1.3bn in January. The round, which also included DST Global and Liberty Global, will help Higgsfield expand its enterprise products and secure computing capacity as it targets corporate customers. Higgsfield, founded in 2023 by former Snap executive Alex Mashrabov and Yerzat Dulat, has amassed over 30 million users and reached $700m in annualized revenue in August.", "body_md": "# Goldman and Intel back $5.4bn AI video startup\n\nGoldman 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.\n\nThe fresh funding values[ the startup ](https://higgsfield.ai/?utm_source=google&utm_medium=cpc&utm_campaign=23792784207&utm_term=higgsfield&content=cid-23792784207_agi-193771123857_adi-806897268471_tid-kwd-1675269397839_dev-c_reg-9045888&wbraid=CkAKCAjwv4XUBhAvEjAA1sSoWH9bY-Imz2F-6Od0Guy7FKHGq2282nYlOgkOiplvEw1xPiasP5CkP_f3uBQaAnhM&gbraid=%5B%220AAAABDdsfPhYedDf6YmFN3P_uqsoIiIFt%22%2C%220AAAABDdsfPhYedDf6YmFN3P_uqsoIiIFt%22%5D&gad_source=1&gad_campaignid=23792784207&gclid=Cj0KCQjw4orUBhCjARIsAIbF3qzijgFnlDQdN6nj1bBsIm6UDFHEO_hBQB444KuKoYy0OqgT2iEQglMaAnIzEALw_wcB)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.\n\nDST 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.\n\nHiggsfield was founded in 2023 by former Snap executive Alex Mashrabov and Yerzat Dulat and launched its browser-based video platform in 2025.\n\nIts 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.\n\nThe company has since amassed more than 30m users across 238 countries and territories, with the US its largest market.\n\nBut its rapid valuation jump has increasingly been driven by businesses rather than individual creators.\n\nAnnualised 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\n\nMashrabov told the Financial Times that the latest cash injection would help Higgsfield “accelerate our move upmarket”, as it targets more corporate customers.\n\n## Investors pile into AI video\n\nThe 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.\n\nGenerating 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.\n\nHiggsfield said part of the $400m round would therefore be spent securing computing capacity, alongside expanding its enterprise products and security.\n\nThe 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.\n\nIt 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.\n\nThe 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.\n\nGoldman 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", "url": "https://wpnews.pro/news/goldman-and-intel-back-5-4bn-ai-video-startup", "canonical_source": "https://www.cityam.com/goldman-and-intel-back-5-4bn-ai-video-startup/", "published_at": "2026-08-17 10:15:29+00:00", "updated_at": "2026-08-17 14:43:02.577809+00:00", "lang": "en", "topics": ["generative-ai", "ai-startups", "ai-products"], "entities": ["Goldman Sachs", "Intel", "Higgsfield", "DST Global", "Liberty Global", "Alex Mashrabov", "Yerzat Dulat", "OpenAI"], "alternates": {"html": "https://wpnews.pro/news/goldman-and-intel-back-5-4bn-ai-video-startup", "markdown": "https://wpnews.pro/news/goldman-and-intel-back-5-4bn-ai-video-startup.md", "text": "https://wpnews.pro/news/goldman-and-intel-back-5-4bn-ai-video-startup.txt", "jsonld": "https://wpnews.pro/news/goldman-and-intel-back-5-4bn-ai-video-startup.jsonld"}}