Snap to spin-off AI video generation team into standalone company ‘Dotmo’: Here’s why
Spinning off internal teams into separate companies is not a new strategy for the Snapchat creator.
Snap CEO Evan Spiegel believes AR glasses will one day become as ubiquitous as phones. (Image credit: Snap Inc.) Snap is reportedly looking to carve out its internal unit working on AI video generation as a standalone company.
The new company will be called Dotmo and will focus on developing AI models capable of creating interactive gaming experiences, according to a report by TechCrunch. The high costs associated with developing AI video generation models is one of the key reasons behind the move.
Spinning off internal teams into separate companies is not new for the Snapchat parent. Earlier this year, Snap announced the launch of its subsidiary, Specs, focused solely on developing smart glasses. Those efforts came to fruition last week when Snap unveiled its first-ever AR glasses. However, the device comes with a hefty price tag of around $2,200, which has raised concerns that it may be too expensive to compete with rival products from Meta and other tech companies.
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