Dotmo will focus on building AI models capable of powering interactive gaming experiences. The startup will be comprised of former Snap employees, and while it will not receive direct funding from the social media firm, Snap CTO Bobby Murphy is stepping in as the lead investor. Murphy will retain his full-time role at Snap, continuing to oversee the company’s broader research and development initiatives.
In section Startups & Technology
Snap spins off generative AI video team into independent startup Dotmo
Facing the mounting expenses of internal research, Snap is carving out its generative AI video division into an independent venture named Dotmo. While the new entity will operate separately from the Snapchat creator, the spinoff allows the parent company to shed overhead while retaining an equity stake in the startup’s future.
Under the terms of the deal, Snap grants Dotmo a license to adapt proprietary technology for gaming platforms. In exchange, Snap secures a significant equity position, positioning itself to benefit if the startup gains market traction. This move follows a broader trend of restructuring at Snap, which includes the earlier spinoff of its Specs smart glasses division and a reduction in force that saw 1,000 positions eliminated earlier this year. Unlike the hardware-focused Specs unit, Dotmo targets digital experiences that fall outside of Snap’s current primary business priorities.
Comments (0)
No comments yet. Be the first!