Video generation startup Higgsfield AI is in talks with investors to raise $300 million to $500 million at a $5 billion pre-money valuation. That's more than quadruple its valuation from a funding round back in January. Meanwhile, the San Francisco-based company, founded in 2023, has hit a $500 million annualized revenue run rate this month — 2.5 times the $200 million run rate it reported in January.
DST Global is currently negotiating to invest, though the round hasn't closed yet. Higgsfield AI's main product is an AI image and video generation platform, with subscriptions ranging from $19 to $99 per month. It recently launched a marketing agent called Supercomputer. While the company initially relied on individual creators, enterprise customers now account for 70% of platform activity.
This deal talk underscores the red-hot investment climate for video AI: Google recently invested about $75 million in a studio (A24) for AI collaboration, and another video generation company, Runway, closed a $315 million round at a $5.3 billion valuation in February. Meta also explored acquiring either Higgsfield or its rival Runway back in 2025.