An AI video company went from $20 million to $700 million of annualised revenue in a year
Higgsfield, which makes AI video and image tools aimed at professional creators, brands, agencies and studios, announced a $400 million Series B on 17 August at a $5.4 billion valuation. That is more than four times the $1.3 billion it was worth at its Series A eight months earlier. The company says annualised revenue reached $700 million this month, against $20 million a year ago, with 30 million users across 200 countries. DST Global led the round; participants included Growth Equity at Goldman Sachs Alternatives, Intel Capital, Liberty Global Tech Ventures, Mirae Asset Capital, NTT DOCOMO Ventures, Tribe Capital, Smash Capital, Fifth Wall and Valor Capital, alongside existing investors Accel and Menlo Ventures.
Why it mattersTwo years ago AI video was a demo people shared for the strangeness of it. A run rate of $700 million means someone is now buying it as a line in an advertising budget, at scale, mostly through businesses rather than hobbyists. That is the moment a technology stops being a curiosity and starts changing who gets hired to make a commercial — and the growth rate here is fast enough that the answer will change again before most agencies have adjusted.
▶ Related video: I Tested Higgsfield AI: Motion Control, Image Generation & AI Video Tools
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