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\* Snap is spinning off its expensive generative AI video team into a new gaming-focused startup named Dotmo. \* Snap will provide zero direct funding, with CTO Bobby Murphy acting as lead investor using personal capital. \* Snap retains a large equity stake and technology licensing rights to capture future upside without the financial risk. \* This marks Snap's second major spinoff (after Specs) alongside 1,000 layoffs to aggressively streamline operations. \* The move immediately lowers operating expenses by removing …
— ORIGINAL POST ·
Snapchat Spins off dotomo AI, a generative video effort to improve profit margins
· r/stocks
· Jun 22, 2026