HomeSnap Splits Generative AI Video Team to Launch Dotmo, Easing High R&D Costs
Snap, parent company of Snapchat, has officially spun off its internal generative AI video team into a new independent entity named Dotmo. This strategic decision addresses the high costs associated with in-house generative AI development, aiming to reduce financial pressure on Snap while granting the team greater operational agility. Dotmo will concentrate on building AI models designed to create interactive gaming experiences, with its founding team consisting of key Snap employees who have transitioned to the new venture.
While Dotmo operates independently, it maintains strong financial and technological ties with Snap. The new company will not receive direct funding from Snap; however, Snap’s Chief Technology Officer, Bobby Murphy, will serve as a major investor, holding a significant personal stake. Murphy will continue his full-time role at Snap, leading its generative AI research and development efforts. In exchange for talent and technology licensing, Snap has acquired a substantial equity position in Dotmo, which may also pursue external financing in the future.
This spin-off represents Snap’s second major restructuring effort this year. Earlier in 2026, Snap spun off its Specs team, responsible for smart glasses development. The AR glasses, priced at $2,200, underperformed in the market, contributing to a decline in Snap’s stock price. Coupled with Snap’s earlier decision to eliminate approximately 1,000 positions this year, this move highlights the company’s commitment to streamlining non-core operations and optimizing its financial structure. Unlike Specs, which focused on hardware, Dotmo concentrates on digital experiences outside Snap’s core business, though both entities retain the potential for future collaboration.
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Snap, parent company of Snapchat, has officially spun off its internal generative AI video team into a new independent entity named Dotmo. This strategic decision addresses the high costs associated with in-house generative AI development, aiming to reduce financial pressure on Snap while granting the team greater operational agility. Dotmo will concentrate on building AI models designed to create interactive gaming experiences, with its founding team consisting of key Snap employees who have transitioned to the new venture.
While Dotmo operates independently, it maintains strong financial and technological ties with Snap. The new company will not receive direct funding from Snap; however, Snap’s Chief Technology Officer, Bobby Murphy, will serve as a major investor, holding a significant personal stake. Murphy will continue his full-time role at Snap, leading its generative AI research and development efforts. In exchange for talent and technology licensing, Snap has acquired a substantial equity position in Dotmo, which may also pursue external financing in the future.
This spin-off represents Snap’s second major restructuring effort this year. Earlier in 2026, Snap spun off its Specs team, responsible for smart glasses development. The AR glasses, priced at $2,200, underperformed in the market, contributing to a decline in Snap’s stock price. Coupled with Snap’s earlier decision to eliminate approximately 1,000 positions this year, this move highlights the company’s commitment to streamlining non-core operations and optimizing its financial structure. Unlike Specs, which focused on hardware, Dotmo concentrates on digital experiences outside Snap’s core business, though both entities retain the potential for future collaboration.
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