Facetune Maker Splits AI from Photo Editing

Lightricks, the creator of the popular Facetune photo editing application, has announced a significant restructuring. The company is splitting its consumer app business from its generative AI video platform, known as LTX. This strategic division aims to enhance the company's ability to capture growth opportunities within the rapidly expanding artificial intelligence market, which is reshaping traditional software industries.

The separation is driven by investor interest, with the business-to-business LTX unit attracting considerable attention due to the high-growth potential of AI. In contrast, the Facetune app represents a mature, profitable software model that generated approximately $100 million in profits last year. LTX, founded in 2024, has already received substantial investment from Lightricks and has seen significant adoption of its AI model.

Industry experts suggest that this separation allows for better valuation, as pure-play AI ventures command higher investor appetite than diversified software platforms. The move provides future optionality, including potential external funding or a spin-off for the LTX division, as founders focus on leading the AI development.