Chapter 1: What does Higgsfield's $1.3 billion valuation signify for the AI video industry?
The AI video startup Higgs Field, which was founded by some ex-Snapchat executives, has just reached a $1.3 billion valuation. This is massive, not just for the company, but I think for the AI video space, and it shows you just how fast things are heating up. It also shows that venture capitalists are still willing to back a lot of these big AI video plays.
Even when it feels like OpenAI Sora and Google Gemini are really dominating with things like Google VO3 and like a lot of these big Runway and Pika and like a lot of these big labs have these really impressive video products and they have billions of dollars behind them.
And yet we're still, you know, willing to invest into new startups, which means they believe that OpenAI and Google are not going to run away with the market. There's going to be a lot of other players here. So today I want to get into the deal and how it's sort of structured, how they were able to raise this money and what their company is able to do, what sets them apart.
Get into all of that in the state of AI video today.
Before we do that, I wanted to mention, if you want to try a lot of the AI models I mentioned on the podcast, including everything from Google, OpenAI, Meta, 11 Labs for Audio, tons of cool audio and video generators, go check out my startup, which is AIbox.ai. There's a link in the description. You get access to over 40 different AI models all in one place.
You can chat with them just like ChatGPT, switch between models, test them, compare them side by side.
It's $20 a month and you don't have to have subscriptions to a dozen different services and all of your data is in one place. So if you want to check it out, there's a link in the description to AIbox.ai. All right, let's talk about this deal that's going down with Higgs Field right now.
I think what's interesting is this has actually grown a lot bigger than their original fundraising announcement that they did. So they actually did an extension of their $50 million Series A. They closed that back in September. They've now done an extension and they sold an additional $80 million in equity, which means that their total Series A is $130 million.
This is kind of an interesting thing. You know, a lot of people could be like, oh, wow, like they they were able to get all this extra money. But also because we're seeing like rounds happen so close back to back for a lot of the big A.I.,
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Chapter 2: How is Higgsfield differentiating itself from competitors like OpenAI and Google?
and its growth numbers are really, really impressive, even for AI companies. Five months after they launched, they reported 11 million users, and they said that they had become a preferred platform for content creators. As of this month, they say that they have surpassed 15 million users, and they've reached $200 million in annual revenue run rate.
So according to them, that number has doubled from 100 million pace in roughly two months. So If this is all accurate, that growth would essentially put Higgs field among some of the fastest growing consumer facing AI companies to date, right? Like, I mean, this is incredible growth.
They have some press material and they claim that their trajectory is outpacing well-known software startups like lovable cursor, open AI, Slack, and Zoom. I mean... OK, sure. But it's going to be pretty hard to outpace OpenAI in the long run on video. But I do think it's impressive.
But it's always funny when people toot their own horn and compare themselves to the growth rate of OpenAI, which I don't know if they're going to ever catch up to that. But in any case, while a lot of those companies are, you know, inherently selective, they also underline how aggressively Higgs field wants to be perceived as more than just a viral app.
To try to reinforce that message, they also have recently shifted a lot of their public positioning rather than leaning into like meme culture or like experimental video generation. Higgs field is now emphasizing that its core users are professional social media marketers and brand teams, right? Because I think that was kind of the...
where you could see the trap for a lot of these video generators fall into is kind of what Sora did where you go on Sora and you make these little funny clones of yourself and there's like Jake Paul on there that gave his permission for you to like make a video of him getting punched in the face by a punching glove and like
There's all these silly things that are very novel that you feel like you could do with Sora. And while Sora can be used probably for professional things, that is the brand image that Sam Altman generated for his Sora video generation app. It was kind of goofy and funny. They're not trying to go goofy and funny. They're trying to be like, look, we are professional. We're for serious brands.
We're for teams. the company describes this as evidence that, you know, the adoption has moved beyond casual experimentation and into real business use where teams rely on the platform to produce consistent on-brand content at volume.
I mean, I think they really do have to make this pitch and say, look, we're more than just kind of like a fun platform or a serious platform for business because they know that the business is where the real money comes from. And if they can't be taken seriously for that, then even regular users probably wouldn't use them as much for funny stuff because the novelty will wear off. So,
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Chapter 3: What unique skills do leaders from Higgsfield bring from their experience at Snap?
It's not as easy as images and text, but it's way more valuable for advertisers and platforms. videos get a lot more attention, they drive a lot more engagement, they're increasingly dominating how brands are communicating online.
So if Higgs field can actually can actually like contribute to converting viral adoption into this kind of like durable business usage, I think it is going to end up less like an AI video kind of like factory and more like, you know, infrastructure for how the internet's videos are actually getting made and this kind of like really useful tool. Thank you so much for tuning into the podcast today.
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And as always, make sure to go check out AIbox.ai if you want to try a lot of the different AI models I talk about on this show, all for one place for $20 a month. Thanks so much for tuning in. A link to AIbox is in the description and I'll catch you in the next episode.