Snap spins – Snap is spinning off an internal generative AI video team into a new company called Dotmo, citing the high cost of building advanced interactive gaming and entertainment AI models. The venture will launch with a team of current Snap staff, while Snap keeps a l
For Snap, the pressure isn’t just about building generative AI—it’s about what it costs to keep building it.
The company will spin off an internal generative AI video team into a separate company called Dotmo, focused on developing AI models that can create interactive gaming experiences. Snap said the high costs of conducting this work internally are one of the reasons for the move.
Even as Dotmo becomes its own company, it won’t be a clean break from Snapchat. Snap will provide Dotmo with a license to adapt its technology for gaming and interactive entertainment platforms. Dotmo’s starting team will also be drawn from inside Snap: the company said the initial team consists of current Snap staff leaving Snap to launch the new venture.
Dotmo also has a major link to Snap’s leadership. While the company says Dotmo won’t be funded directly by Snap. Bobby Murphy—Snap’s chief technology officer—will act as lead investor and hold a significant personal stake in the new firm. Murphy will still work for Snap full-time as its CTO and will continue to lead Snap’s GenAI research and development initiatives.
Snap expects to trade resources for upside. In exchange for the talent and the technology license, Dotmo will give Snap a large equity stake. Dotmo could also seek outside funding later, Snap said.
The Dotmo launch lands as Snap’s second major spinoff push this year. Earlier in 2026, Snap spun off Specs into a new company devoted exclusively to developing its smart glasses line. Snap’s recent unveiling of Specs drew sharp backlash from investors after concerns were raised about the hefty price tag—around $2. 200—sending Snap’s stock lower. That period also came after a round of layoffs earlier this year in which some 1,000 jobs were cut.
Dotmo is different from Specs, at least in how Snap frames its mission. A Snap representative said the Dotmo team will be focused on digital experiences that aren’t currently part of Snap’s core business priorities. Still, the representative added that Dotmo could function as a future partner if the fit looks right.
The move follows a broader playbook that spinoffs often represent: reshaping where work happens without giving up all potential reward. Snap’s decision keeps exposure to whatever Dotmo builds through its large equity stake. while aiming to reduce the financial burden it described around running this type of AI effort internally.
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