Snap Spins Off AI Video Team Into New Company Dotmo for Interactive Gaming
Snap, the parent company of Snapchat, is planning to spin off its internal unit working on AI video generation into a standalone company named Dotmo, according to a report by TechCrunch. The new entity will focus on developing AI models capable of creating interactive gaming experiences.
The move is driven in part by the high costs associated with developing AI video generation models. By separating the team into a distinct company, Snap aims to manage expenses more effectively and allow Dotmo to operate with greater strategic focus.
This is not the first time Snap has carved out a specialized unit. Earlier this year, the company announced the launch of Specs, a subsidiary dedicated to developing smart glasses. Last week, Snap unveiled its first-ever augmented reality (AR) glasses under this initiative. The device carries a price tag of approximately $2,200, raising concerns that it may be too expensive to compete with similar products from Meta and other tech firms.
Dotmo's emphasis on interactive gaming signals Snap's continued investment in AI-driven entertainment, even as it restructures its internal teams to address financial and operational challenges.
