Higgsfield’s $1.3B Valuation Hikes the Stakes in AI Video—Even as Controversy Follows

Higgsfield’s $130 million Series A round and $1.3 billion valuation have thrust the AI video startup into the same league as OpenAI and Zoom, even as its tools face scrutiny for misuse.

The company now claims a $200 million annual revenue run rate and 15 million users, doubling from $100 million in two months. Founder Alex Mashrabov, who previously sold his AI startup AI Factory to Snapchat for $166 million in 2020, has shifted Higgsfield’s focus from casual creators to professional marketers.

The platform’s capabilities were highlighted—and criticized—by a user-generated video depicting people from the Epstein files alongside fictional characters on a fictional island.

This duality underscores Higgsfield’s role as both a corporate tool and a potential vector for problematic content. A press release statement noted, "...puts it in rarified growth terrain, outpacing companies like Lovable, Cursor, OpenAI, Slack, and Zoom."

Investors in the Series A extension include Accel, AI Capital Partners, Menlo Ventures, and GFT Ventures. While the company’s valuation and revenue growth are striking, the shift from "casual creators" to professional clients signals a recalibration of its market strategy.