Snap Inc. has said it will spin off its in-house generative AI video team into a standalone company called "Dotmo," which will focus on building interactive gaming experiences powered by AI models.
June 18, 2026 · Snap Inc.
Snap Spins Off Its AI Video Team Into "Dotmo" as Costs Soar
Facing roughly $100M per quarter in AI/ML research spending, Snap is externalizing its generative video unit into a standalone company focused on interactive gaming — keeping a large equity stake but providing no direct funding.
$100M
Estimated AI/ML research spend per quarter
2nd
Major spin-off of 2026, after the "Specs" AR unit in January
$0
Direct funding from Snap — CTO invests personally instead
The Quarterly Burn
$100M every quarter — equal to $400M a year on AI/ML research
Generative AI video is among the most expensive technology to develop. Spinning out the team eases the in-house burden while Snap keeps the upside via equity and licensing.
How the Split Works
Snap Inc.
Keeps large equity stake · licenses its GenAI video tech · provides no direct funding
→
Dotmo
New standalone company · staff depart Snap · builds AI-generated interactive gaming experiences
←
Bobby Murphy
Snap CTO, lead investor in a personal capacity · stays full-time CTO leading Snap's GenAI R&D
The Bigger Picture
As Meta and Google pour money into generative video, Snap specializes — pushing its video tech toward gaming and advertising.
Seen as a strategy to externalize spiraling AI costs while staying tied to the parent via licensing and the CTO's stake
Possible signal of a trend: more dedicated video companies for games, AR and interactive worlds
No Dotmo product, website, pricing, benchmarks or release timing disclosed yet at this spin-off stage
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