On June 18, 2026, Snap said it is spinning off its in-house generative AI video team into a standalone company called "Dotmo." The move is driven by the high cost of keeping such AI work in-house, and Dotmo will focus on building AI models for interactive gaming experiences.
June 18, 2026 · Snap Inc.
Snap Spins Off Its AI Video Team Into a New Company: Dotmo
Citing the cost of keeping the work in-house, Snap is carving out its generative AI video group into a standalone startup focused on AI models that generate interactive gaming experiences — its second major spinoff of 2026.
2nd
Major Snap spinoff of 2026, after Specs in January
~1,000
Roles cut in April 2026 — about 16% of staff
5s
Length of AI Clips video generated from a single photo
How the deal is structured
Legally independent, but tightly tethered to Snap.
TECH LICENSE
Snap licenses its technology to Dotmo to adapt for gaming & interactive entertainment.
LEAD INVESTOR
CTO Bobby Murphy invests personally; Snap does not invest directly. He stays full-time at Snap.
EQUITY STAKE
In exchange, Snap takes a large equity stake; Dotmo may raise outside funding later.
Snap's in-house AI video timeline
From consumer Lenses to a standalone gaming-AI company.
MAR 2025
AI Video Lenses
In-house generative model. Platinum subscription, $15.99/mo.
MAR 2026
AI Clips
One photo → 5-second video. Closed-prompt system for Lens+ subscribers.
JUN 2026
Dotmo spinoff
Team leaves to build AI models for interactive gaming. Details undisclosed.
THE UPSIDE
Externalizes costly digital-experience R&D outside the core business
Equity stake keeps future upside in Snap's hands
Existing tools slot into AR via Lens Studio
THE OPEN QUESTIONS
Team size, model names and launch timing all undisclosed
No real-world use or user/developer feedback yet
AI Clips' closed prompts are less flexible than open text-to-video
Continue reading The rest of this article is for AI News Blitz readers. Choose an option below to keep reading.
Already purchased? Sign in ✓ Signed in — this article isn’t included in your current plan.Unlocking the full article…