In October 2025, the Kazakh startup Higgsfield AI officially joined the ranks of “unicorns” – companies valued at more than $1 billion. The rapid growth continued: by early 2026, the platform had surpassed 15 million users, and its annual revenue approached $200 million.

From the outset, the project targeted the international market. Although its headquarters is registered in San Francisco, Kazakh engineers play a significant role in its development, and the startup is a participant in the Astana Hub program.

For many observers, the emergence of the first Kazakh “unicorn” symbolized the country’s transition to a new stage of technological development, attracting the attention of global investors and stimulating the domestic IT sector.

However, the company’s rise was soon overshadowed by controversy. By early 2026, Higgsfield found itself at the center of an international scandal. Media reports and social media discussions cited allegations of aggressive advertising, opaque subscription practices, and, more worryingly, promotional content containing racist and sexist messages.

Approximately 85% of its users were marketers utilizing the service to create advertising videos, a factor that significantly contributed to its rapid scaling.

In Kazakhstan, the development was widely presented as a national achievement. However, questions soon emerged regarding the company’s business practices.

Shortly after achieving unicorn status, Higgsfield faced a wave of user complaints, primarily concerning subscriptions and refunds.

During major promotional campaigns, including “Black Friday” discounts of up to 65%, reducing the monthly price to $25, customers were promised unlimited access to advanced models. However, many users later reported a sharp decline in video generation speed after payment. According to these accounts, the application became difficult to use without purchasing additional credits, despite advertised “unlimited” access.

The company attributed the disruptions to bot attacks, stating that tens of thousands of fake accounts had been blocked, and that approximately $1.35 million had been refunded to legitimate users due to service issues.

In December 2024, the situation escalated when users reported widespread account suspensions without prior notice. The peak occurred on December 25-26, when clients with Russian IP addresses were reportedly restricted. Affected users lost not only access to paid services, but also the ability to download previously created content.

Initially, the company did not publicly comment. It later stated that the suspensions were linked to suspicious payment activity and anti-bot measures.

Additional criticism focused on alleged “dark patterns” in subscription management. Users claimed that payments were processed instantly, while subscription cancellation was difficult or technically inaccessible. On social media platforms, users compiled complaints alleging unfair practices, and warning others about what they described as a problematic business model.

Under mounting pressure, Higgsfield reinstated certain accounts and issued refunds.

Controversial Marketing: Racism and Sexism Allegations

Particular criticism targeted the company’s marketing strategy. In early 2026, reports emerged that Higgsfield’s marketing team had distributed ready-made promotional materials to content creators, including videos that allegedly contained racist and sexually explicit language inserted into the voices of well-known cartoon characters.

According to media reports, some clips included racially charged phrases and statements widely perceived as discriminatory. Critics also alleged that the company used deepfake technology to create content featuring well-known public figures, including actors Sydney Sweeney and Zendaya, as well as Donald Trump and Elon Musk, without authorization. Some of the content was described as sexualized.

Observers further argued that certain marketing materials reflected sexist undertones, relying on provocative imagery that many viewers considered degrading toward women.

Some commentators compared the strategy to “rage marketing,” a tactic based on deliberate provocation to generate attention. However, in Higgsfield’s case, critics argue that the international scale of distribution magnified reputational risks, potentially affecting perceptions of Kazakhstan’s technology sector abroad.

Amid intensifying criticism, co-founder Alexander Mashrabov publicly acknowledged operational shortcomings. In a statement on social media, he said that rapid scaling had created “real challenges” and “failures in internal processes,” adding: “Our internal processes and external communications did not always keep pace with our values, and we made mistakes. We take full responsibility and are actively correcting our course.”

Despite these assurances, the controversy has damaged Higgsfield’s reputation. Allegations concerning subscription practices, the use of deepfakes, and claims of racist and sexist content may complicate the company’s relationships with partners, regulators, and investors.