Snap is turning its internal generative AI video group into an independent company called Dotmo, a move designed to give the team more room to build while easing the cost of in-house development. The new venture will focus on AI models that can power interactive gaming and entertainment experiences.
Although Dotmo will operate separately, it will stay closely connected to Snap through a technology license that allows the startup to adapt Snap's work for gaming and interactive platforms. The founding team will include current Snap employees who are leaving to launch the company.
Snap said the new company will not be directly funded by the parent firm. Instead, Bobby Murphy, Snap's chief technology officer, will serve as lead investor and hold a meaningful personal stake, while continuing his full-time role at Snap and leading its GenAI research efforts.
In return for the team and the license, Snap will receive a significant equity position in Dotmo, keeping a stake in any future growth. The company also left the door open to outside funding later on, if the venture expands as planned.
The move follows Snap's earlier spin-off of Specs, its smart glasses unit, showing a broader strategy of separating specialized projects into focused companies. With Dotmo, Snap is sharpening its portfolio while preserving access to emerging AI opportunities. The structure could help accelerate innovation and shape new forms of digital play in the years ahead.
