According to a report from TechCrunch, Snap plans to turn its in-house generative AI video team into a separate company called Dotmo to build interactive gaming experiences. Social media companies cited the high cost of developing such technology in-house as the reason for the move.
According to TechCrunch, Dotmo will be staffed by current Snap employees who are leaving to launch the venture, and Snap will license the startup to adapt its technology for games and interactive entertainment. While Snap will not directly fund Dotmo, Chief Technology Officer Bobby Murphy will personally own a significant stake as lead investor, although he will remain in a full-time role overseeing AI research at Snap. According to reports, Snap will receive a significant equity position in the new company in exchange for talent and technology licenses. Dotmo may also seek external funding in the future.
According to TechCrunch, the spinoff marks Snap’s second major reorganization this year, following the separation of its Specs smart glasses division into an independent entity. Snap also cut about 1,000 jobs in early 2026. A Snap representative told TechCrunch that Dotmo is focused on digital experiences outside of the company’s core business, but could become a partner in the future.
