Snap spins off AI video team into new company, Dotmo, due to costs Snap is spinning off its internal generative AI video team into a new, separate company named Dotmo, which will focus on developing AI models for interactive gaming experiences. This move is partly due to the high costs associated with conducting such work internally, while still maintaining close ties and an equity stake for Snap. Dotmo will be led by a portion of Snap’s current staff and will receive a technology license from Snap, with Snap’s CTO acting as lead investor.

• Snap is spinning off its generative AI video team into a new company called Dotmo.
• Dotmo will focus on developing AI models for interactive gaming experiences.
• High internal costs were a reason for the spinoff.
• Dotmo will retain close ties to Snap, including a technology license and a team of current Snap staff.
• Snap’s CTO, Bobby Murphy, will be the lead investor and have a significant personal stake in Dotmo.
• Snap will receive a large equity stake in Dotmo in exchange for talent and technology.
• This is Snap’s second major spinoff this year, following Specs.
• Dotmo’s focus on digital experiences is distinct from Snap’s core business priorities. Continue reading https://techcrunch.com/2026/06/18/snap-spins-off-ai-video-team-into-new-company-dotmo-due-to-costs/