April 30, 2026 – Freepik, once a quiet stock image platform, has rebranded as Magnific. It now generates $230 million in annual recurring revenue from AI video. And it never took a cent of VC money.
Freepik is no more. The Spanish creative platform has officially rebranded as Magnific, following a dramatic pivot into AI video generation. Moreover, the company now earns $230 million in annual recurring revenue. CEO Joaquín Cuenca Abela confirmed the figures to Fortune exclusively on April 28, 2026.
The transformation is remarkable. Founded in 2010 as a stock image platform in Málaga, Spain, Freepik carved a profitable niche in digital assets. Previously, Cuenca had sold a startup to Google before co-founding Freepik. Then generative AI changed everything.
A Pivot Driven by DALL-E’s Arrival
In 2022, OpenAI released DALL-E 2. Cuenca recognised the threat immediately and pivoted hard into generative AI tools. Consequently, Freepik began combining AI image models with editing capabilities. Last year, the company pushed further still into AI video generation. Today, video accounts for roughly half of all revenue, meaning approximately $115 million ARR comes from video alone.
“We are creating a new economy,” said Cuenca. “People are finding they can do a new thing that was not possible before.”
— Joaquín Cuenca Abela, CEO, Magnific
How Magnific’s Business Model Works
Rather than building its own AI video models, Magnific aggregates the best available. It then layers proprietary pre-production tools on top. As a result, capital costs stay low while product quality remains high.
Furthermore, the client list validates the strategy. Magnific has powered ad campaigns for Puma and Carl’s Jr. Meanwhile, Amazon Prime Video relied on it for the series House of David, and the BBC has similarly adopted the platform. These are credibility-building names in any enterprise sales conversation.
“There’s going to be some pain in any transformation.”
— Joaquín Cuenca Abela, CEO, Magnific
Workforce Restructured for the AI Era
The pivot came at a cost. Magnific currently employs 400 people, down from around 550 at its stock image peak, a reduction of roughly 27%. Nevertheless, Cuenca stresses the company is now hiring for entirely different, higher-value skills. Ultimately, the goal is to surpass the old employment peak. In the meantime, Magnific operates across Málaga, San Francisco (around 20 staff), and Colombia.
Why the Market Timing Is Perfect
Magnific is riding a powerful tailwind. Specifically, the global AI video generator market was valued at $788.5 million in 2025 and is projected to reach $946 million in 2026. By 2033, analysts expect the market to hit $3.44 billion, a compound annual growth rate of 20.3%. In addition, adoption is accelerating fast: around 78% of marketing teams now use AI-generated video, while production costs have dropped by 91%, from $4,500 per minute to roughly $400.
In terms of model dominance, Google’s Veo 3.1 is the clear leader. Indeed, it holds a 96.4% market share among AI video platforms by order volume, and monthly orders surged 5x between December 2025 and January 2026. Given this, Magnific’s decision to integrate Veo places it squarely at the centre of demand.
Bootstrapped and Profitable: A Rare Breed
What makes Magnific truly unusual is its financing model. Unlike most AI companies, it has never raised outside capital, no Series A, no venture fund on the cap table. Furthermore, Cuenca confirms the business has been profitable throughout its transformation. This stands in stark contrast to the broader industry: for example, Synthesia closed a $200 million Series E in January 2026 at a $4 billion valuation, yet Magnific matches its growth trajectory with zero external capital.
Could Magnific raise funds in future? Cuenca says it is possible. However, he sets a high bar: “If we do it, it’s because we want to grow the DNA of the company.” For now, therefore, revenue alone is the fuel for expansion.
What This Means for the AI Industry
Magnific challenges a core Silicon Valley assumption: that AI leadership demands massive VC funding. In fact, a profitable bootstrapped model can compete at scale. Similarly, the company challenges geography: while Silicon Valley dominates AI mindshare, Magnific is built in Málaga, a city better known for sunshine and Picasso. As a result, Spain is emerging as a legitimate AI hub.
The rebranding from Freepik to Magnific is more than cosmetic; it signals a complete strategic identity shift. Overall, the message for investors, marketers, and founders is clear. A frontier model is not required. Neither is VC funding. Instead, smart positioning, great workflow tools, and the willingness to pivot when markets shift are what truly drive success.
