AI video startup Higgsfield is in talks to raise at a $5bn valuation

AI video startup Higgsfield is in talks to raise $300 million to $500 million at a $5 billion pre-money valuation, The Information reported. The valuation would be four times the company's $1.3 billion worth in January. DST Global, the fund built by early Facebook backer Yuri Milner, is among the investors in talks to join the round, which has not closed. Higgsfield crossed a $500 million annualized revenue run rate this month, up from $200 million at the end of 2025, according to reporting on the round. Roughly 70 percent of that activity comes from enterprise customers. The company was founded in 2023 by Alex Mashrabov, who previously ran generative AI at Snap and helped build the team behind Snapchat Lenses. Higgsfield's tools turn text and images into video, generating about 4.5 million clips a day. In May, a 15-person team used the system to produce a 95-minute AI action fantasy film in 14 days for a reported cost under $500,000. The startup operates in a crowded field alongside Kling, Runway, Google's Veo, and OpenAI's Sora. It recently shared a Cannes stage with China's Kling to showcase AI-made ad work. The round has not closed and talks can fall apart or reprice.