Goldman Sachs and Intel have joined a $400 million financing that values AI video startup Higgsfield at $5.4 billion, a more than fourfold increase from the $1.3 billion price tag assigned just eight months ago. The round, led by Goldman’s Equity Growth fund and joined by DST Global, Liberty Global, Tribe Capital, Smash Capital, Fifth Wall, Valor Capital, Mirae Asset Capital and NTT Docomo Ventures, underscores how quickly capital is chasing companies that promise to turn generative video into a recurring enterprise revenue stream.
Valuation leap outpaces revenue
The jump from $1.3 billion to $5.4 billion in less than a year is striking even by current AI standards. Annualised revenue hit $700 million in August, up from roughly $20 million a year earlier, according to the company. That implies a revenue multiple near eight times, but the multiple eight months ago was closer to sixty-five times. The math only works if the buyer believes the revenue trajectory will stay vertical and that the mix shift toward corporate customers is durable.
Enterprise pivot drives the round
Higgsfield was founded in 2023 by former Snap executive Alex Mashrabov and Yerzat Dulat, launching its browser-based platform in 2025. The product lets users generate and edit clips from text or images, controlling camera moves and effects without a physical shoot. The company claims more than 30 million users across 238 countries and territories, with the United States the largest market. Yet the valuation surge has been fueled less by that consumer base than by a shift in the revenue mix: business accounts now represent the majority of sales, up from under a quarter in January. Mashrabov told the Financial Times the new capital will “accelerate our move upmarket” as the firm targets marketing teams that need a steady flow of social content without relying on traditional production houses.
Compute bill comes due
Video generation consumes far more compute than text or image models, and Higgsfield said part of the $400 million will be earmarked for securing GPU capacity alongside expanding enterprise features and security. That spending line is a reminder that the unit economics of AI video remain opaque: every minute of output burns cycles that must be paid for before a subscription dollar arrives.
Competitive landscape tightens
The startup now sits alongside OpenAI’s Sora, Google’s Veo and specialist rival Runway in a race to extend clip length and fidelity. The technology is already creeping into film production, raising labor concerns across creative industries. Goldman has previously estimated the global creator economy could swell from $250 billion in 2023 to $480 billion by 2027, a forecast that assumes brands keep feeding the short-form video machine. Whether Higgsfield can convert that tailwind into sustainable margins, or simply burns the fresh cash on compute, is the question the next funding round will answer.