Key facts
- Snap is spinning off its AI video team into a new company called Dotmo.
- Dotmo will focus on AI models for interactive gaming experiences.
- High internal costs were cited as a reason for the spinoff.
- Snap will retain a significant equity stake in Dotmo.
- Snap's CTO, Bobby Murphy, will act as lead investor and continue his role at Snap.
Snap is spinning off its internal generative AI video team into a new, separate company named Dotmo. The decision was driven by the high costs associated with developing such technology in-house. Dotmo will concentrate on creating AI models capable of generating interactive gaming experiences.
While operating as an independent entity, Dotmo will maintain close ties with Snap. The new company will receive a license to adapt Snap's technology for gaming and interactive entertainment platforms. The initial team for Dotmo will comprise current Snap employees who are transitioning to the new venture.