- Higgsfield is in talks to raise $300M–$500M at a $5B valuation, up 4x from January
- The company told Business Insider its run rate hit $500M in June 2026, up from $200M
- Sora shut down in April, and Runway pivoted to world models, clearing its path
Higgsfield is reportedly in talks to raise between $300 million and $500 million at a $5 billion pre-money valuation, according to The Information. That would be more than four times what the AI video startup was worth in January 2026.
DST Global, the firm founded by early Facebook backer Yuri Milner, has reportedly been in discussions to join the round. The financing has not closed, and the terms could still change.
What makes the number credible is the revenue behind it, and what makes the timing notable is who is no longer standing in Higgsfield’s way.
The revenue behind the number
Higgsfield told Business Insider its annualised revenue run rate reached $500 million in June 2026, up from $200 million at the end of 2025, and that the company is cash-flow positive. Independent estimates from Sacra put the company closer to $400 million as of May 2026, so the exact June figure rests on the company’s own disclosure rather than third-party verification.
Even on the more conservative trajectory, a platform that did not launch commercially until March 2025 built a run rate in the hundreds of millions within about 15 months. Roughly 70% of that revenue reportedly comes from enterprise customers paying recurring subscription and usage fees, which is why investors appear to be treating the growth as durable rather than a short-lived spike.
At $500 million in run-rate revenue and a $5 billion valuation, Higgsfield would be trading at roughly 10 times revenue, a steep multiple, though one broadly consistent with what growth-stage investors are currently paying for AI application companies with real, usage-backed revenue.
The team behind
Alex Mashrabov founded Higgsfield in 2023 with chief technology officer Yerzat Dulat and co-founder Mahi de Silva. Mashrabov previously sold his earlier startup, AI Factory, to Snap for $166 million, then led generative AI at Snap before starting Higgsfield.
The company has raised approximately $138 million to date, according to Sacra, including a $50 million Series A in September 2025 and an $80 million extension led by Accel in January 2026 that set its $1.3 billion valuation.
Higgsfield’s platform turns text prompts and images into finished videos and reportedly generates around 4.5 million videos a day. Its enterprise customers, which include hundreds of Fortune 500 companies, use it for ad campaigns, product videos and social content that once took weeks to produce through an agency.
Earlier this year, a 15-person team used the platform to produce a 95-minute AI-generated film in fourteen days for under $500,000, a project that would traditionally take months and several million dollars.
Two rivals just left the room
The timing is doing real work here. OpenAI shut down its Sora consumer app on April 26, 2026, after the product generated roughly $2 million in total revenue against an estimated $1 million a day in compute costs.
Runway, long Higgsfield’s closest competitor in commercial video, raised $315 million at a $5.3 billion valuation in February 2026 but has been steering its business toward world models for robotics, gaming and medicine rather than continuing to compete for ad and content budgets. That leaves a meaningful piece of the enterprise video market with one fewer serious competitor than it had at the start of the year.
Higgsfield’s own growth has not been free of controversy. In December 2025, the platform was used to generate “Island Holiday,” a video placing figures named in the Epstein files on a fictional vacation, which drew public criticism. Separately, on February 9, 2026, Higgsfield’s official X account was suspended after the company’s marketing team was found to have circulated promotional clips lifted from stock footage sites and presented as AI-generated output, alongside “unlimited” subscription plans that were later throttled.
Mashrabov publicly acknowledged that the company’s internal processes and communications haven’t always kept pace with our core values. Higgsfield has since built a tool called Similarity Scoring that flags potential matches to celebrity likenesses and brand logos before content ships.
The open question is whether commercial AI video has genuinely found a durable business model, or whether Sora’s failure, enormous compute spend against almost no revenue, is closer to the category’s real story, with Higgsfield simply pushing the same reckoning further out by chasing enterprise budgets instead of consumer hobbyists. A marketing team generating fifty product videos in two hours has a concrete cost case that a casual user experimenting with a prompt does not, which is the strongest argument for durability.
Whether that holds as the company pushes toward its stated goal of $1 billion in annualised revenue by the end of 2026 is what this round is actually about.
