San Francisco-based Higgsfield, an AI video startup founded by a former Snap executive, said it is on track to generate more than US$1 billion in annualized revenue, based on its latest four weeks of sales, as businesses spend more on AI-generated video ads.

Chief executive Alex Mashrabov said contracted revenue from business customers has increased 10x since June.

He added that subscriptions now make up just over 60% of revenue as usage-based spending rises.

Higgsfield launched its AI video platform in late March 2025. It said the platform now has more than 32 million users and nearly 1 million paying subscribers worldwide.

The company raised US$400 million in August at a US$5.4 billion valuation in a round led by DST Global.

Mashrabov also said Higgsfield has been cash-flow break-even in recent months.

Mashrabov said Higgsfield expanded its customer support team and is working to open source more of the workflows behind its videos after creator criticism earlier in 2026.

Separately, legal commentary suggested some AI-generated ads may require disclosure.

🔗 Source: Bloomberg