Woofun AI reports that Snap has disclosed plans to spin off its in-house Generative AI Video team into an independent entity named Dotmo. This strategic restructuring aims to address escalating research and development costs within the parent organization. Dotmo will concentrate on building AI models tailored for interactive gaming experiences, marking a shift toward specialized application development.

Despite operating as a standalone company, Dotmo will preserve a technical licensing relationship with Snapchat, ensuring continued collaboration on core technologies. The founding team comprises existing Snap employees who are transitioning to lead the new venture, signaling an internal reorganization rather than an external acquisition.