The $400 million round led by Goldman Sachs and Intel pushes AI‑video platform Higgsfield into a $5.4 billion valuation, signalling that the technology is moving from hobbyist creators to enterprise‑grade marketing teams. For Canadian agencies and brands, the influx of capital means faster access to tools that can generate and edit video at scale without traditional production costs.
Investors also included DST Global, Liberty Global, Tribe Capital, Smash Capital, Fifth Wall, Valor Capital, Mirae Asset Capital and NTT Docomo Ventures. The funding lifts the startup's worth from $1.3 billion eight months ago, reflecting a broader rush to commercialise generative AI.
Founded in 2023 by former Snap executive Alex Mashrabov and Yerzat Dulat, Higgsfield launched its browser‑based platform in 2025. The service lets users turn text and images into video clips, control virtual camera moves and apply visual effects without any filming equipment.
Revenue surged to $700 million in August, up from roughly $20 million a year earlier, as business customers now represent the majority of sales. Mashrabov told the Financial Times the new capital will help the company "accelerate our move upmarket" and target larger corporate accounts.
Part of the proceeds will secure additional computing capacity, a critical expense given that video generation consumes far more processing power than text or image models. The funds will also support expansion of enterprise features and security controls.
Higgsfield joins a crowded field that includes OpenAI's Sora, Google's Veo and niche players such as Runway. As the technology improves, it is poised to encroach on traditional film production and advertising workflows, raising questions about job displacement in creative sectors.
With the United States already its largest market, the company's growth is likely to spill over into Canada, where marketers are increasingly seeking AI‑driven video solutions to keep pace with short‑form content demands.