AI Factory

Niche deep learning and real-time video AI startup acquired by a major social platform for its proprietary face-animation technology

AI Factory was a Kyiv-based artificial intelligence and computer vision startup that specialized in real-time video processing and face-swapping technology. Founded by Victor Shaburov and a team of Ukrainian engineers, the company developed sophisticated deep learning algorithms capable of animating still photos and applying realistic facial transformations to video in real time — capabilities that were considered cutting-edge in the consumer AI space at the time of its acquisition. In January 2020, Snap Inc. acquired AI Factory for approximately $166 million, one of the larger acquisitions in Snap's history. The deal brought not only the technology but also the engineering talent behind it, with the Ukrainian team continuing to work on Snap's augmented reality and computational photography initiatives. The acquisition was a strategic move by Snap to deepen its AR capabilities and differentiate its camera platform from competitors like Instagram and TikTok. AI Factory's technology was most visibly deployed as the backbone of Snapchat's 'Cameo' feature, which allowed users to insert their own faces into short animated video clips and GIFs. This feature became a popular creative tool within Snapchat and demonstrated the commercial viability of consumer-facing deepfake-adjacent technology. Following the acquisition, AI Factory ceased to exist as an independent entity and was fully absorbed into Snap's engineering and product organization, leaving behind a significant legacy in the AR and computational photography space.