YouTube, the leader in online video, is not without its fair share of serious competition coming from the likes of Vimeo, Hulu, and more. Now, it appears that its latest rival may come from someone who was once very close to the service.

In fact, the challenge may come from one of its co-founders. Speaking over the weekend at a Q&A session with Digg’s Kevin Rose, YouTube co-founder Chad Hurley tipped that he was working on a new sort of video site – one more focused on creators and collaboration.

“I wish [SXSW] was a month later because I could unveil the new product,” said Hurley in a recent interview. He said that the new service will be “primarily video-based…and gives flexibility for people to work together and create content.”

Hurley made sure to say that he wasn’t looking to kill YouTube and that “there’s always going to be a place for YouTube.” His new site will simply focus on being a “platform better suited for collaboration.”

Hurley is the co-founder and former CEO of YouTube. IN 2006, he and Steve Chen sold YouTube to Google for $1.65 billion. He stepped down as CEO in 2010.

[AdWeek]