Snap Spins Off AI Video Team into New Independent Company, Dotmo

Snap is spinning off its internal AI video team into a new independent company called Dotmo, which will focus on generative video development. The move follows a pattern of Snap divesting internal units, with current Snap staff departing the social media company to join the new venture.

Cost pressures appear to be a key driver behind the decision to separate the team rather than continue developing AI video capabilities in-house. Dotmo will operate independently, continuing its work on generative video as a standalone entity.