Snap spins off AI video team into new company, Dotmo, due to costs

Snap is spinning off another internal group, with staff leaving the company to form Dotmo and focus on AI video development. The move reflects the costs of building advanced video-generation technology inside Snap.

The spinoff suggests Snap is trying to keep exposure to promising AI work while reducing direct spending. It also reflects a broader trend of companies separating capital-intensive AI projects into standalone ventures that can raise funding independently.