Snap spins off its AI video team into a new company called Dotmo

In short: Snap is turning its in-house AI video team into a separate company called Dotmo, saying the work is expensive to do inside Snap.

What happened

Snap, the company behind Snapchat, is spinning off an internal team that works on generative AI video. Generative AI means software that can create new content, like making a video from instructions (similar to a very advanced auto-create tool).

The new company is called Dotmo. Snap told TechCrunch that Dotmo will focus on building AI models, which are the core programs that learn patterns from lots of examples, to create interactive gaming experiences.

Even though Dotmo will be a separate company, it will stay closely connected to Snap. Snap will give Dotmo a license, which is basically permission, to adapt Snap technology for gaming and other interactive entertainment. The initial Dotmo team will be made up of current Snap employees who are leaving Snap to start the new company.

Snap said Dotmo will not be funded directly by Snap. However, Snap Chief Technology Officer Bobby Murphy will be the lead investor and will personally own a significant stake. Murphy will still work at Snap full-time and continue leading Snap’s generative AI research.

Snap will also receive a large ownership stake in Dotmo in exchange for the staff and the technology license. Snap said Dotmo may later raise money from outside investors.

Why it matters

This is another sign that building AI video tools can be costly, even for a big consumer app company. For regular people, it may affect where new AI-powered video and game features show up first, inside Snapchat or in new products Dotmo makes on its own.

Source: TechCrunch AI