Video startup Higgsfield AI in talks for $500M round at $5B valuation

Video startup Higgsfield AI, founded in March 2025, is in negotiations to raise between $300 and $500 million. The pre-money valuation will be $5 billion — four times the company's value at the beginning of 2026.

From Zero to $5 Billion in 15 Months

The Information was first to reveal the negotiation parameters. The startup is seeking investors for a new round and expects to lock in a pre-money valuation of $5 billion. Once the deal closes, the total valuation will be higher: at $400 million in funding (the midpoint), it will exceed $5.4 billion.

Key round figures:

• Founding date — March 2025
• Company age at the time of negotiations — approximately 15 months
• Requested funding volume — $300–500 million
• Pre-money valuation — $5 billion
• Valuation growth since January 2026 — 4x

The fourfold growth means: at the beginning of 2026, Higgsfield was valued at approximately $1.25 billion. In the first half of the year, capitalization grew by approximately $3.75 billion. Such growth is rare even in a heated AI market — most companies that crossed the $5 billion mark required at least three to five years. Higgsfield achieved it in 15 months from founding.

Why AI Video Attracts Such Funding

Highsfield AI specializes in video generation using artificial intelligence — one of the most attractive segments of generative AI for investors in 2025–2026.

Demand for tools that enable creating professional video content without filming equipment has exceeded expectations. Marketing teams, advertising agencies, and content creators are looking for ways to produce video faster and cheaper — generative video tools directly address this need.

The same segment includes active players like Runway, Pika Labs, Kling, and other well-funded competitors — all of them attracted large rounds in a similar period. Nevertheless, Higgsfield's fourfold valuation growth in one year stands out against the competition.

The speed of growth also reflects broader venture capital logic in AI: investors compete to enter companies with early organic audience growth, seeking to lock in their stake before the startup becomes an obvious leader. This gives Higgsfield leverage in valuation negotiations.

What This Means

If the round closes on the stated terms, Higgsfield AI will join the ranks of the fastest AI unicorns in history. For the market, it's another signal: venture capital in 2026 maintains a high appetite for AI video and is willing to pay significant multiples for companies with viral audience growth.

Frequently Asked Questions

What was Higgsfield's valuation at the beginning of 2026?

Based on fourfold growth to the current pre-money valuation of $5 billion, in January 2026 the company's valuation was approximately $1.25 billion.

Has the round closed?

No. As of early July 2026, the company is in the negotiation stage — final deal terms have not yet been agreed upon.