tech
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 comprised of current Snap staff who are leaving the social media company to focus on AI video development.
TL;DR
- Snap is spinning off its generative AI video team into a new company called Dotmo.
- Dotmo will focus on developing AI models for interactive gaming experiences.
- High internal costs were a reason for the spinoff.
- Dotmo will retain close ties to Snap, including a technology license and a team of current Snap staff.
- Snap's CTO, Bobby Murphy, will be the lead investor and have a significant personal stake in Dotmo.
- Snap will receive a large equity stake in Dotmo in exchange for talent and technology.
- This is Snap's second major spinoff this year, following Specs.
- Dotmo's focus on digital experiences is distinct from Snap's core business priorities.