Snap spins off AI video team into new company, Dotmo, due to costs
The Snapchat maker is spinning off yet another internal unit. Dotmo will be composed of current Snap staff who are leaving the social media company to focus on AI video development. Snap will be spinning off an internal generative AI video team into a separate company.
Key Takeaways
- The new company - dubbed Dotmo - will focus on developing AI models that can create interactive gaming experiences, Snap told TechCrunch.
Snap cited the high costs of conducting such work internally as one of the reasons for the spinoff.
- Additionally, while Dotmo won't be funded by Snap directly, the company says that Bobby Murphy, its chief technology officer, will act as lead investor and will have a significant personal stake in the new firm.
Though a financial backer, Murphy will continue to work for Snap full-time as its CTO and continue to lead its GenAI research and development initiatives.
- Earlier in 2026, Snap spun off Specs into a new company to focus exclusively on the development of its smart glasses line.
(Snap's recent unveiling of Specs wasn't exactly a home run for the company.
- However, it could still be considered a partner in the future if the fit seems right, they added.
Spin-offs can be a cost-savings strategy for companies, although they can serve a variety of other purposes - like showing off a particular asset, generating investor attention, or providing operational flexibility to the team involved.
- Through candid fireside chats and high-impact networking, you'll walk away with valuable insights and new connections.
Stats & Key Facts
- #Snap's stock tanked after concerns were raised about the hefty price tag attached to the new smart glasses, which is around $2,200.
- #) Snap also underwent a round of layoffs earlier this year, during which some 1,000 jobs were cut .
The new company - dubbed Dotmo - will focus on developing AI models that can create interactive gaming experiences, Snap told TechCrunch. Snap cited the high costs of conducting such work internally as one of the reasons for the spinoff. While technically a separate company, Dotmo will retain its close ties to the Snapchat creator.
For one thing, Snap will provide Dotmo with a license to adapt its technology for gaming and interactive entertainment platforms. At the same time, the initial Dotmo team will consist of a group of current Snap staff who are leaving Snap to launch the new venture. Additionally, while Dotmo won't be funded by Snap directly, the company says that Bobby Murphy, its chief technology officer, will act as lead investor and will have a significant personal stake in the new firm.
Though a financial backer, Murphy will continue to work for Snap full-time as its CTO and continue to lead its GenAI research and development initiatives. In exchange for the talent and the technology license, Snap will get a large equity stake in Dotmo, the company said - a position that could prove rewarding if the company prospers in the future. Dotmo may also eventually seek outside funding, Snap said.
For more details please read the original article at TechCrunch AI.
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