Snap spins off AI video team into new company Dotmo

Snap spins off AI video team into new company Dotmo

10 reported

Snap is spinning off an internal generative AI video team into a separate company called Dotmo, which will focus on developing AI models for interactive gaming experiences. Snap cited the high costs of conducting such work internally as a reason for the spinoff. The initial Dotmo team will consist of current Snap staff leaving to launch the venture, and Snap will provide a license for Dotmo to adapt its technology for gaming and interactive entertainment. Snap’s chief technology officer, Bobby Murphy, will act as lead investor with a significant personal stake in Dotmo while continuing to work full-time as Snap’s CTO. Snap will receive a large equity stake in Dotmo in exchange for the talent and technology license. This is Snap’s second major spinoff in 2026, following the earlier spinoff of its Specs smart glasses line.

What’s reported

Snap is spinning off an internal generative AI video team into a new company called Dotmo.
Dotmo will focus on developing AI models for interactive gaming experiences.
Snap cited high costs of internal work as a reason for the spinoff.
The initial Dotmo team will consist of current Snap staff leaving to launch the venture.
Snap will provide Dotmo with a license to adapt its technology for gaming and interactive entertainment.
Snap CTO Bobby Murphy will act as lead investor and have a significant personal stake in Dotmo, while continuing as Snap’s full-time CTO.
Snap will get a large equity stake in Dotmo in exchange for talent and the technology license.
Dotmo may eventually seek outside funding.
This is Snap’s second major spinoff in 2026; the first was Specs, its smart glasses line.
Snap underwent layoffs earlier in 2026, cutting about 1,000 jobs.

Key figures

Bobby Murphy, Snap chief technology officer

Sources: TechCrunch

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