Lightricks Launches AI Video Spin-Off LTX with New Licensing Model for Startups
About two months after announcing its plan to split into two independent companies, Israeli tech firm Lightricks has launched LTX, a new AI-driven video model. Unlike traditional video tools focused on final content creation like films or marketing videos, LTX aims to provide foundational AI infrastructure for diverse applications including robotics training, real-time avatar operation, and simulation building. The corporate split, expected to complete by year-end pending tax authority approval, will separate Lightricks’ profitable app business, led by Facetune, from LTX’s AI-focused operations. Each entity will have its own management, board, and investor fundraising strategy. The restructuring involved laying off 75 employees while planning to hire about 25 new AI specialists.
LTX develops "open world models," AI technology that generates video, audio, and physical world simulations. CEO Dr. Ze'ev Farbman explained that LTX’s models can predict future video frames from a given input, a capability useful for robotics which must anticipate physical outcomes based on sensor data like touch and temperature. The company invests roughly $50 million annually to train these foundational models on massive video datasets, a cost most startups cannot afford. LTX intends to provide startups with pre-trained models to customize for their own data and products, lowering the barrier to entry.
To accommodate smaller companies, LTX is developing models requiring fewer computational resources and plans a tiered licensing approach. Startups with less than $10 million in revenue can use the models freely, while those exceeding that threshold will negotiate licensing terms, potentially involving revenue shares or fees based on usage scale. This strategy encourages broad adoption without upfront costs, monetizing only successful commercial deployments.
LTX’s AI applications span three main areas: media and entertainment content creation, real-time video avatars for interactive communication, and Physical AI including robotics and defense simulations. The company does not build robots but supplies the core AI models for others to develop robotic systems. LTX emphasizes hardware-agnostic compatibility across platforms like Apple, AMD, and Nvidia, differentiating itself from competitors who often lock users into proprietary ecosystems.
The open-source release of LTX’s models aims to enhance safety and transparency by allowing widespread scrutiny. Following the split, Lightricks will retain its mobile apps and influencer marketing platform, employing under 100 people and generating over $100 million in revenue. LTX, with about 250 employees mainly in R&D, continues to expand its AI talent pool. The separation will enable LTX to seek new financial partners and investors focused on AI innovation.
