Snap spins off AI video team into new company, Dotmo, due to costs
Snap is spinning off its internal generative AI video team into a new company called Dotmo to reduce internal costs. While Snap will retain an equity stake, Dotmo will focus on developing interactive gaming experiences with support from Snap's CTO, Bobby Murphy.
Why it matters
This move highlights the financial pressures tech companies face when scaling expensive AI research and the trend of spinning off specialized units to maintain agility.
Snap will be spinning off an internal generative AI video team into a separate company. The new company — dubbed Dotmo — will focus on developing AI models that can create interactive gaming experiences, Snap told TechCrunch.
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