Snap spins off Dotmo to cut costs, license gaming tech
Snap, the company behind Snapchat, is spinning off Dotmo, a fresh, independent venture focused on generative AI for interactive gaming.
By spinning off its internal AI video team, Snap aims to cut costs.
Even though Dotmo is now separate, it will keep using Snap's tech for gaming under a licensing deal.
Bobby Murphy leads Dotmo investment
Dotmo kicks off with current Snap staff who are leaving Snap to launch the new venture. Snap keeps a big equity stake thanks to its tech and talent contributions.
Bobby Murphy, Snap's chief technology officer, is backing Dotmo as lead investor while still leading GenAI research at Snap.
The company might look for outside funding down the road.
Dotmo will explore projects beyond Snap
This is Snap's second major spinoff in 2026, after Specs smart glasses, but unlike Specs, Dotmo will explore projects beyond Snap's usual priorities.
The move helps Snap save money but still lets it benefit if Dotmo succeeds in the AI gaming space.