Snap Spins Off AI Video Team Into Dotmo on June 18

According to TechCrunch, Snap announced on June 18 that it will spin off its internal generative AI video team into Dotmo, a separate company focused on AI models for interactive gaming. Snap will license its technology to Dotmo for gaming and interactive entertainment and take a large equity stake. CTO Bobby Murphy will personally lead Dotmo's funding while remaining Snap's full-time CTO. The spinoff was partly driven by the high cost of AI development, with Snap spending approximately US$100 million per quarter on machine learning and AI internally.
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