Snap Spins Off Dotmo To License Generative AI For Interactive Gaming Experiences

Snap, the company behind Snapchat, is spinning off Dotmo as a separate company focused on generative AI for interactive gaming experiences.

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Snap told TechCrunch that it is creating Dotmo by spinning off an internal generative AI video team, citing the high costs of conducting such work internally.

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Dotmo will retain close ties with Snapchat, with Snap providing a license to adapt its technology for gaming and interactive entertainment platforms.

The initial Dotmo team will consist of a group of current Snap staff who are leaving Snap to launch the new venture, while Snap says Dotmo may seek outside funding later.

TechCrunch also reported that the move marks Snap’s second major spinoff effort in 2026 after Snap spun off Specs into a new company for its smart glasses line.

Bobby Murphy, Snap’s chief technology officer, is backing Dotmo as lead investor while still leading GenAI research at Snap, according to NewsBytes and TechCrunch.

NewsBytes reported that Dotmo kicks off with current Snap staff who are leaving Snap to launch the new venture, while Snap keeps a big equity stake thanks to its tech and talent contributions.

TechCrunch

TechCrunch said Dotmo won’t be funded by Snap directly, but that Murphy will have a significant personal stake in the new firm while continuing to work for Snap full-time as its CTO.

In exchange for the talent and the technology license, Snap will get a large equity stake in Dotmo, a position TechCrunch said could prove rewarding if the company prospers.

TechCrunch added that Snap said Dotmo may eventually seek outside funding, and that the spinoff is intended to reduce the financial burden associated with Snap’s AI efforts while maintaining exposure to upside through equity.

The Dotmo spinoff is framed as part of Snap’s broader cost and structure changes, with TechCrunch noting that Snap spun off Specs earlier in 2026 and that Snap’s stock tanked after concerns were raised about the hefty price tag attached to Specs glasses, which is around $2,200.

“Snap will be spinning off an internal generative AI video team into a separate company”

TechCrunch

TechCrunch also reported that Snap underwent a round of layoffs earlier this year, during which some 1,000 jobs were cut, and that Dotmo represents a different kind of spinoff than the Specs operation.

In a separate account, Zamin.uz said Snap is turning its internal division focused on AI-based video technologies into an independent entity named Dotmo and that Snap admitted conducting such work using internal resources has become excessively expensive.

Zamin.uz further stated that Snap will grant the new startup a license to adapt its technologies for gaming and interactive entertainment platforms, and that Snap will acquire a significant portion of Dotmo’s shares in exchange for personnel and licensing.

NewsBytes added that Dotmo will explore projects beyond Snap’s usual priorities, while still letting Snap benefit if Dotmo succeeds in the AI gaming space.