Snap Spins Off AI Video Team Into New Company Dotmo Due to Costs
Original: Snap spins off AI video team into new company, Dotmo, due to costs
Snap separates its AI video development team into new independent startup Dotmo to manage rising costs.
Snap is spinning off its internal AI video unit into an independent startup called Dotmo, staffed by current employees who are departing the social media company. The move is driven by the high cost of AI video development, which has become difficult to justify inside a core advertising business. The spinout keeps the team's work alive while removing the associated financial burden from Snap's balance sheet.
Snap, the company behind the popular social media app Snapchat, is separating yet another internal unit from its core business — this time spinning out its AI video development team into an independent startup called Dotmo. The move is driven by cost pressures, and will see current Snap employees leave the company to continue their AI video work under the new brand.
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