en.Wedoany.com Reported - Snap, the image-focused social platform, has spun off its internal generative AI video team to establish an independent company called Dotmo. The new company will focus on developing AI models capable of creating interactive gaming experiences, Snap told tech blog TechCrunch.
High operational costs were a key factor driving Snap's decision to spin off the team.
Despite being technically independent, Dotmo remains closely tied to Snap. Snap will license its technology to Dotmo, enabling its application in gaming and interactive entertainment platforms. Dotmo's initial team consists of current Snap employees who will leave the company to launch this new venture.
Snap's Chief Technology Officer Bobby Murphy will serve as Dotmo's primary investor and hold a significant personal stake in the new company. Murphy will continue to work full-time as Snap's CTO and lead its generative AI research and development initiatives. Snap did not directly invest in Dotmo.
In exchange for talent and technology licensing, Snap will receive a substantial equity stake in Dotmo, a position that could yield returns if the company succeeds in the future. Snap stated that Dotmo may eventually seek external funding.
This spin-off marks Snap's second major organizational restructuring this year. Earlier in 2026, Snap spun off its Specs business into an independent company focused on developing smart glasses product lines. Snap's recently released Specs smart glasses, priced at approximately $2,200, received a market response below expectations, causing its stock price to decline. Additionally, Snap conducted a round of layoffs earlier this year, cutting about 1,000 positions.
A Snap representative said that Dotmo's spin-off differs from the Specs business, with its team focusing on developing digital experiences that are not currently part of Snap's core business priorities. The representative added that Dotmo could still be considered a partner if conditions become suitable in the future.
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