Lightricks splits consumer apps from generative AI unit LTX amid industry restructuring trend

Jerusalem-based Lightricks, known for its popular photo-editing app Facetune, announced an internal reorganization separating its established consumer apps business from its newer generative AI unit LTX Studio. According to an internal memo obtained by Reuters, the split aims to "better capture the growth in AI" while allowing both divisions to operate with focused strategies.

The company, founded in 2013, built its reputation with subscription-based creative tools like Facetune and Photoleap used by over 30 million people. Its generative AI division emerged in 2023 with LTX Studio, a cinematic AI platform that generates storyboards and video sequences from text prompts. This division recently launched a mobile version and introduced enterprise features.

Three key factors drive the separation:

1. Divergent development cycles: Consumer apps require incremental feature updates, while generative AI products demand rapid model iteration
2. Market positioning: LTX competes in the enterprise AI space against tools like RunwayML, while Facetune targets creative professionals
3. Investment strategy: The structure allows separate funding rounds and valuation metrics for each unit

This mirrors industry patterns where companies like Stability AI and Jasper have similarly restructured to isolate generative AI initiatives. Lightricks' move comes as generative AI faces adoption challenges despite heavy investment, with Goldman Sachs economists recently noting AI contributed "basically zero" to 2025 US economic growth.

Potential hurdles include:

• Resource allocation conflicts between cash-generating consumer apps and capital-intensive AI R&D
• Brand dilution if LTX's enterprise focus conflicts with Lightricks' consumer-centric identity
• Market saturation in generative video, where LTX competes against OpenAI's Sora and Pika Labs

Lightricks maintains both divisions will share underlying AI research, with CEO Zeev Farbman emphasizing "synergistic independence" in the memo. The restructure doesn't affect existing subscriptions for Facetune or LTX Studio users.

This organizational shift reflects pragmatic adaptation to AI's dual reality: explosive technical capability growth contrasted with slower commercial adoption. As generative AI transitions from hype phase to practical deployment, such corporate restructurings may become increasingly common among vertically integrated tech firms.