Kazakhstani AI startup reaches $1.3 billion valuation

The company has raised $130 million in funding / Photo: Shutterstock, photo editor: Milosh Muratovskiy

Higgsfield AI, a startup from Kazakhstan, has raised new funding at a valuation of more than $1.3 billion, Reuters reported. The company develops AI-powered video generation tools and is among the fastest-scaling generative AI projects globally.

The company recently disclosed that it raised $130 million in a Series A funding round, with Accel, GFT Ventures and Menlo Ventures among the investors. The deal valued the startup at over $1.3 billion.

Higgsfield also said its annualized revenue run rate (ARR) has reached $200 million, a metric that reflects projected revenue if current growth continues.

According to co-founder Alexander Mashrabov, who shared the update on LinkedIn, the company reached the $200 million run rate in less than nine months. Revenue doubled from $100 million to $200 million in just eight weeks. He said the platform has more than 15 million users worldwide, with some customers spending over $300,000 per year.

«People call us the next ‘Cursor for video,’ but the scale here is different. The software tools that created today’s tech giants went after markets measured in the hundreds of billions. Higgsfield is going after the trillion-dollar video economy,» Mashrabov wrote.

Reuters reported that Higgsfield does not aim to compete directly with OpenAI or Google on foundational AI models. Instead, it integrates third-party models into its platform and focuses on building applied tools for businesses.

«We minimize the production tax so that, eventually, better stories and better ideas win,» Mashrabov said in an interview.

The startup focuses on post-training models and is developing a «reasoning engine» that connects multiple AI systems, allowing consistent characters and branding in marketing videos.

Founded in 2023, Higgsfield launched a browser-based product in March 2025 that enables the full video production workflow within a single platform. Social media marketers account for about 85% of its usage.

The company has become the first Kazakhstani startup to reach unicorn status. It was founded by Mashrabov and Erzat Dulat and is expanding in the U.S., China and Japan. The company has also turned down an acquisition offer from Meta, choosing to remain independent and continue scaling on its own.