(11 February 2026 | Source: National Business Kazakhstan)
A Kazakhstani startup, Higgsfield AI, which had previously achieved 'unicorn' status, has found itself at the centre of public complaints. The catalyst was allegations regarding the revision of subscription terms, account blocking, and the use of third-party technologies. The situation raises questions about the transparency of the business model of rapidly growing AI platforms.
______________
For reference: a unicorn is a private technology company (startup) valued at over $1 billion that is not listed on a stock exchange (i.e., it is not a public company).
HOW THE STARTUP BECAME A 'UNICORN'
The project was founded by Kazakhstani IT specialist Erzat Dulat and Alex Mashrabov, a former head of generative artificial intelligence at Snapchat.
The company bet on an aggressive marketing strategy and quickly entered the generative AI market.
As of January, Higgsfield AI's valuation was estimated at $1.3 billion, with an annual turnover of $200 million. At the start of the year, the team announced plans for business expansion: opening new offices and increasing staff from 70 to 300 employees. According to the material, around 85% of the audience were marketers, reports National Business Kazakhstan.
WHAT COMPLAINTS HAVE BEEN RAISED BY USERS AND EXPERTS
In early February, a critical article was published on GitHub by author Anil Chandra Naidu Matcha, a machine learning specialist. He claims that the company offered 'unlimited' annual plans with significant discounts, which resulted in rapid subscription growth.
According to him, on 19 December 2024, the service rules were changed unilaterally: mass account blockings began, including users with Russian IP addresses. Some clients reported losing access to paid-for materials and having difficulties obtaining refunds.
The publication also mentions possible multiple payment charges and changes to the 'unlimited' terms through an additional system of paid 'batteries'. The materials do not specify whether any inspections or legal proceedings are being conducted regarding these matters.
QUESTIONS OVER TECHNOLOGY AND CONTENT
The investigation's author and independent researchers claim that some platform features may have operated on third-party models, rather than Higgsfield AI's own developments. It is stated that the company charged a higher price for access to such tools than the original providers.
Furthermore, complaints have been raised about the use of demonstration templates and the publication of sexualised deepfakes featuring well-known individuals. Publication The Register criticised the startup's advertising campaigns as ethically questionable.
"It seems the main problem is that they barely provide any of their own services. It gives the impression that most of their website is just a shell for third-party services," noted British IT expert Ian Hudson in a comment to The Register.
Aaron Rabinowitz, CEO of Motion Management, described the company's communication with the market as short-sighted.
"One melting face, three stolen models, and a monthly subscription to disappointment," was the verdict delivered by online critics to a product that claimed to be a technological revolution.
THE COMPANY'S POSITION
At the time of publication, the source did not provide an official comment from Higgsfield AI regarding the listed allegations.