Snap spins off AI video team into Dotmo

TechCrunch reported that Snap will spin off an internal generative AI video team into a separate company called Dotmo. Dotmo will focus on AI models for interactive gaming experiences and will receive a license to adapt Snap technology for gaming and interactive entertainment platforms. Snap said the cost of doing the work internally was one reason for the spinoff. CTO Bobby Murphy will be the lead investor while continuing to work full time at Snap, and Snap will retain a large equity stake in the new company.

Key details: Published June 18, 2026 at 20:30 UTC, Dotmo will focus on AI video models for interactive gaming, Snap cites internal cost as one reason for the spinoff, Snap CTO Bobby Murphy will be lead investor.

Why it matters: High AI development costs are pushing some companies to restructure research teams instead of keeping every generative project in-house.