Snap spins off AI video team into Dotmo

Snapchat's parent company is spinning off its internal generative AI video team into a new entity named Dotmo. This strategic move aims to reduce the significant costs associated with developing advanced AI models internally. Dotmo will focus on creating AI-driven interactive gaming experiences, leveraging technology licensed from Snap. While operating independently, Dotmo will maintain close ties to its parent company, with Snap's CTO Bobby Murphy acting as the lead investor and holding a substantial personal stake. Snap will also receive a significant equity stake in Dotmo, ensuring potential upside from the new venture's success.