Snap is spinning off its internal generative AI video team into a new company called Dotmo to reduce high in-house costs and focus on interactive gaming experiences. Bobby Murphy will personally invest and remain Snap’s CTO while Snap secures a significant equity stake in Dotmo.
Snap is spinning off its generative AI video unit into Dotmo, a standalone entity dedicated to developing AI-driven interactive gaming models. Dotmo will license Snap’s AI technology and operate with a team of current Snap engineers transitioning to the new venture.
Dotmo will launch backed by a personal investment from CTO Bobby Murphy, who will continue leading Snap’s GenAI research and development full-time. Snap will not directly fund Dotmo but will hold a significant equity stake in exchange for technology licensing and talent.
This marks Snap’s second major spinoff in 2026 following its Specs smart glasses unit. The move aims to alleviate the financial burden of costly AI development while preserving upside potential through Snap’s equity position in Dotmo.
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