As part of its efforts to diversify its AI business operations, Snap will separate its generative AI team into a new independent organization called Dotmo, which will focus on developing artificial intelligence (AI) models and immersive gaming experiences.
TechCrunch reports that Dotmo will operate under a license to adapt Snap’s proprietary technology to gaming and interactive entertainment platforms.
The new organization will also consist of Snap’s current generative AI video team, which has decided to technically leave Snap to work on projects unrelated to the social media platform.
With the rising cost of developing AI models and immersive gaming experiences in-house, Snap decided to connect its generative AI video team to a separate company called Dotmo.
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A Snap representative told TechCrunch that while the digital experiences planned for Dotmo will exist separately from the social media company’s core business, the company may consider partnering with Dotmo in the future if it sees fit.
Snap will receive a significant stake in Dotmo, but Dotmo may eventually seek funding from someone other than Bobby Murphy, Snap’s CTO and Dotmo’s lead investor. Murphy will hold a “significant stake in the new company,” the report said.
The report further states, “Through financial support, Mr. Murphy will continue to work full-time as Snap’s CTO and continue to lead GenAI’s research and development initiatives.”
Despite growing revenue in all markets while maintaining 950 million daily active users in Q1 2026, Snap has struggled to establish a clearer path to net profitability.
The company’s stock price plunged this week after the launch of a new generation of products. specification
announced, adding another potential challenge to Snap’s long-term revenue plans.
Snap cited the high cost of developing AI models and immersive gaming experiences as the main reason for creating the Dotmo spinoff.
If Dotmo is successful, the company could help reduce Snap’s AI investment costs while expanding its creative portfolio.
