AI video startup Higgsfield says it's pacing toward a $1 billion-plus annualized run rate

What happened

Higgsfield Inc., the San Francisco AI video outfit, says it is currently running at a revenue pace that would exceed $1 billion on a full-year basis. The company estimates that figure by annualizing the most recent four weeks of revenue, multiplying that period by 13.

The company is led by CEO Alex Mashrabov, 31, who co-founded Higgsfield in October 2023 after four years at Snap. Snap had purchased his prior venture, AI Factory, in 2019. The company rolled out the AI video service at the end of March 2025 and, since that launch, has accumulated over 32 million users along with nearly 1 million paying subscribers worldwide. In August, it secured $400 million in new financing, valuing the company at $5.4 billion, with DST Global leading and Goldman Sachs Alternatives and Intel Capital among the backers.

Growth drivers and business model

The surge is tied to rising adoption of AI-made video by businesses, with direct-to-consumer brands driving particularly strong demand, according to Mashrabov. "As soon as businesses see positive return on investment from AI-generated ads, they keep generating more and more," he said, describing a "snowball effect" in spending. Revenue already under contract from business clients has jumped tenfold since June as companies tap AI video for advertising.

Higgsfield AI serves professional creators, brands, agencies and studios, powering everything from ads and social clips to longer-form entertainment. The platform mixes subscriptions with usage-based fees that increase for longer or higher-quality outputs. The company's revenue mix has shifted: it began with more than 90% coming from subscriptions; the share from subscriptions is now just over 60% as on-demand usage has grown. Mashrabov said the business has been roughly breakeven on cash flow for the past couple of months.

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Operations, tech and market footprint

Higgsfield is building differentiation by pooling roughly 35 models across image, video, audio and large language categories alongside its own tech, giving creators the option to choose the best model for each task instead of sticking with a single provider. The company has a major engineering hub in Almaty, Kazakhstan.

The rapid climb has not been without friction: earlier this year, some creators pushed back on what they saw as aggressive marketing. Mashrabov said the company responded by growing customer support to more than 40 people, up from two last October, and by working on transparency, including open-sourcing the workflows behind the showcase videos.

Broader context matters here too. Video is one of the quickest-moving corners of generative AI as models get cheaper and better. Big names are piling in, with Alphabet's Google and ByteDance expanding their AI video efforts, and video-platform players such as Kuaishou Technology are adding capabilities.

Why this matters for your portfolio

Higgsfield reports the US is its top market, with South Korea, Germany, India, the UK, Brazil and France next in line. "We are barely scratching the surface," Mashrabov said. He added: "Our goal is to make sure that next year, most direct-to-consumer businesses in the world are going to be winning and increasing their sales with AI-generated ads made on Higgsfield." If the tenfold jump in contracted business since June, the shift toward usage revenue and that $400 million August raise keep translating into customer output, this could be a bellwether for how fast AI video spending moves from hype to habit.

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