ByteDance is preparing an AI model for real-time spatial video generation, with founder Zhang Yiming personally overseeing the work and a launch possible as soon as next month, Bloomberg reported, citing people familiar with the matter who asked not to be identified.

One of those people cautioned that the timing is not settled and the plans could change. TNW has not independently verified the account, and a ByteDance spokesperson did not respond to Bloomberg’s request for comment.

The model would be built on Seedance, ByteDance’s existing video generation system, and would let users create interactive virtual worlds for live streams, short-form dramas and games.

The reported specification is the interesting part: on-demand video at around 20 frames per second with latency of roughly 0.05 seconds, generated in the cloud rather than on the device.

That last detail is the strategy. Rendering spatial content remotely takes the computational load off the headset, which lowers what the hardware has to do and therefore what it has to cost.