Snap reportedly to spin off AI video unit as Dotmo
Snap, the Snapchat creator, is reportedly looking to carve out its internal unit working on AI video generation as a standalone company called Dotmo.
This move helps Snap cut down on expensive AI development while still keeping a stake in Dotmo.
The new company will focus on building cool AI models for interactive gaming, moving toward developing digital experiences that are not currently a part of Snap's core business priorities.
Bobby Murphy investing in Dotmo
Dotmo will operate independently, with Snap's CTO Bobby Murphy investing his own money and some Snap employees joining the team.
Unlike Specs, Snap's smart glasses spinoff, Dotmo isn't limited to AR or VR; it aims to create digital experiences outside of Snapchat.
Snap will license its tech to Dotmo for gaming and entertainment and might look for more investors down the road.