# Higgsfield CEO: $20 AI subscriptions will be wiped out

Canonical: https://ournews.ai/news/higgsfield-ceo-20-ai-subscriptions-will-be-wiped-out
Published: 2026-10-12T04:18:20.159041+00:00
Updated: 2026-10-12T05:26:57.494033+00:00
Author: James Zhang

Higgsfield CEO Alex Mashrabov thinks Google and OpenAI will wipe out the market for $20-a-month consumer AI subscriptions. In his September 28 interview with Harry Stebbings on 20VC, he explains why Higgsfield is aiming beyond casual users.

**Cheap subscriptions are an entry point.** His focus is moving customers from small monthly plans to spending more than $1,000 a year. [19:43](https://www.youtube.com/watch?v=jszn8rFtxm4&t=1183s)

**Business customers can grow much bigger.** The interview describes one customer moving from $99 a month to $6 million a year. [16:44](https://www.youtube.com/watch?v=jszn8rFtxm4&t=1004s)

**The company reports a $1 billion annualized revenue run rate.** Mashrabov says it took 18 months to reach that level from $1 million. This is a run rate, not a completed year’s revenue. [14:14](https://www.youtube.com/watch?v=jszn8rFtxm4&t=854s)

**Open and closed models have different economics.** He reports margins around 80% on open models, versus 20–30% on closed ones. [31:53](https://www.youtube.com/watch?v=jszn8rFtxm4&t=1913s)

**Heavy AI spending is part of the operation.** He says internal model usage costs more than $4 million a month. [33:05](https://www.youtube.com/watch?v=jszn8rFtxm4&t=1985s)

These are Mashrabov’s claims and forecasts. [Watch the original interview](https://www.youtube.com/watch?v=jszn8rFtxm4).

Source: https://www.youtube.com/watch?v=jszn8rFtxm4