Snap is spinning off its internal generative AI video team into a new company called Dotmo, which will focus on creating interactive gaming experiences. This move is driven by high internal costs and allows Snap to retain close ties to the new venture while reducing its financial burden. Dotmo will be led by a group of current Snap staff and will have access to Snap’s technology license and Bobby Murphy’s personal stake. Snap will retain a large equity stake in Dotmo, which could prove rewarding if the company prospers. This spinoff marks Snap’s second major effort this year, following the launch of Specs, and highlights the company’s efforts to focus on its core business priorities.