Snap Spins Off AI Video Team Into New Company Dotmo
Original: Snap spins off AI video team into new company, Dotmo, due to costs
Why This Matters
Cost-efficient strategy for AI development; maintains upside exposure through equity while reducing operational burden.
Snap announced the spinoff of its generative AI video team into a new independent company called Dotmo on June 18, 2026. The move aims to reduce internal costs while maintaining Snap's equity stake and technology licensing relationship with the new venture.
Snap has spun off its internal generative AI video team into a separate company named Dotmo, which will focus on developing AI models for interactive gaming experiences. Snap cited high operational costs as a primary reason for the spinoff. Although technically independent, Dotmo will maintain close ties to Snap through a technology license allowing Snap to adapt Dotmo's technology for gaming and interactive entertainment platforms. The initial Dotmo team consists of current Snap employees transitioning to the new venture. Bobby Murphy, Snap's Chief Technology Officer, will serve as lead investor with a significant personal stake in Dotmo, while continuing his full-time role at Snap overseeing GenAI research and development. In return for providing talent and technology licensing, Snap will receive a large equity stake in Dotmo. The company may seek outside funding in the future. This marks Snap's second major spinoff in 2026, following the earlier spinoff of Specs to focus on smart glasses development. The move represents a cost-reduction strategy while allowing Snap to maintain exposure to potential upside through equity ownership.