Snap spins off AI video unit due to cost, retaining equity

snap spun off its internal generative ai video team into an independent company named dotmo, which focuses on ai models for interactive gaming. the decision was driven by the high costs of running the unit internally, though snap retains a license to use the technology for gaming. cto bobby murphy will act as the lead investor with a significant personal stake while staying on as snap's full-time cto. in exchange for the technology and talent, snap receives a large equity stake in dotmo. this strategy allows snap to reduce its financial burden and operational complexity while preserving exposure to future ai breakthroughs.