2 minute readnew delhiJune 21, 2026 12:07 PM IST
Snap is reportedly considering launching an internal division to work on AI video generation as a separate company.
The new company will reportedly be called Dotmo and will focus on developing AI models that can create interactive gaming experiences. Tech Crunch. The high cost associated with developing AI video generation models is one of the main reasons behind this move.
Separating internal teams into separate companies is nothing new for Snapchat’s parent company. Earlier this year, Snap announced the launch of Spex, a subsidiary solely focused on developing smart glasses. Those efforts came to fruition last week when Snap unveiled its first-ever AR glasses. However, this device has A hefty price tag of approximately $2,200raising concerns that it is too expensive to compete with rival products from Meta and other technology companies.
With spinoffs like Dotmo and Specs, Snap could be looking to reduce costs associated with its AI strategy while maintaining exposure to potential profits through equity ownership. However, Dotmo will be different from Specs because the team will focus on developing digital experiences that are not currently part of Snap’s core business priorities, according to a company spokesperson cited in the report.
Relationship between Snap and Dotmo
Dotmo will be operated as a separate company. In other words, Not funded by Snap directly. However, Bobby Murphy, Snap’s chief technology officer, will be the lead investor and will have a significant personal stake in the new company. A group of Snap’s current employees will be leaving the company to join new ventures.
Snap will also reportedly offer Dotmo a license to adapt its technology into gaming and interactive entertainment platforms. Snap will receive a large stake in Dotmo in exchange for talent and technology licenses. The company says Dotmo may eventually seek external funding as well.
