Snap spins off AI video team into gaming venture Dotmo

Snap is launching a new venture, Dotmo, by spinning off its internal generative AI video team. The new company will focus on developing interactive gaming experiences, utilizing Snap's AI technology. This move comes as Snap cited the high costs associated with in-house AI development.

Dotmo will be staffed by current Snap employees who are transitioning to the new company. Snap will provide a license for its technology to be adapted for gaming and interactive entertainment. Although Snap will not directly fund Dotmo, its chief technology officer, Bobby Murphy, will serve as the lead investor and retain a significant personal stake. Murphy will continue his full-time role at Snap, overseeing AI research.

In exchange for the talent and technology license, Snap will secure a substantial equity position in Dotmo. The new company may also pursue external funding in the future. This spin-off marks Snap's second major restructuring this year, following the separation of its smart glasses unit. Earlier in 2026, Snap also implemented job cuts, reducing its workforce by approximately 1,000 employees. A Snap representative indicated that Dotmo's focus is on digital experiences outside Snap's core business, though future partnerships are possible.

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Dotmo is focused on digital experiences outside the company’s core business, though it could become a partner in the future.