Snap Inc. announced on June 21, 2026, the spin-off of its internal AI video generation team into an independent company named Dotmo. The new entity will focus on creating AI models for interactive and immersive gaming experiences.
This strategic move aims to mitigate the substantial costs associated with developing advanced AI video technology. Snap will maintain a significant equity stake in Dotmo, allowing the company to benefit from future growth without providing direct operational funding.
Chief Technology Officer Bobby Murphy will serve as the lead investor in the new firm. This decision follows the recent unveiling of Snap’s expensive augmented reality SPECS glasses and reflects a broader effort to streamline costs and prioritize core profitability.