AI video startup Higgsfield targets $1 billion in annual sales

San Francisco-based AI video startup Higgsfield, founded by a former Snap executive, is on track to generate over $1 billion in annualized revenue, based on its latest four weeks of sales. The company attributes this trajectory to increased corporate spending on AI-generated video advertisements.

CEO Alex Mashrabov stated that contracted revenue from business customers has increased tenfold since June. Subscriptions now constitute slightly over 60% of revenue, with usage-based spending also on the rise. Higgsfield launched its AI video platform in late March 2025 and reports having accumulated over 32 million users and nearly 1 million paying subscribers globally.

In August, the company secured $400 million in funding at a $5.4 billion valuation, in a round led by DST Global. Mashrabov also indicated that Higgsfield has achieved cash-flow break-even in recent months. The startup has expanded its customer support team and is working to open-source more of the workflows behind its videos, responding to creator feedback.

The company has been actively expanding its customer support and focusing on enhancing its platform. Industry commentary suggests that some AI-generated advertisements may require disclosure regarding their origin. This development reflects the evolving landscape of AI content creation and corporate adoption.