From Spectacles to Pixy: Snap's History of Shelved Tech Ventures

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

From Spectacles to Pixy: Snap's History of Shelved Tech Ventures
Evan Xie

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Snap Inc.’s new My AI feature that lets users chat with an AI powered by OpenAI’s ChatGPT technology is gaining steam. After initially releasing the feature to some three million paid Snapchat+ subscribers, the Santa Monica-based social tech company decided to open it to all its users for free last week.


While it’s a bit early to tell how many people are actually using the AI chatbot for texting and images, Snap CEO Evan Spiegel implied at Snap’s partner summit last week that it’s accelerated demand for the $3.99 monthly service. Spiegel told Time, “we definitely saw some nice momentum with My AI.”

Snap spokesperson Liz Markman told dot.LA, “as we’ve been rolling out My AI, the vast majority of people with early access have been enjoying playing with it — sending millions of chat messages per day to learn more about movies, sports, pets, and the world around them.” Markman added that Snap plans to use preliminary feedback on My AI to “continue improving” the feature and noted that, “as with all AI chatbots, My AI can occasionally give inaccurate responses - including those that sound plausible but are impossible or unrelated to the given context.”

But not everyone is thrilled about My AI. This week the Snapchat app got a slew of one-star reviews since the My AI launch, with many users annoyed that the AI showed up in their chat tab unannounced and couldn’t be blocked or removed without paying for Snapchat+ to hide it.

That said, the early traction to My AI, and by extension the Snapchat+ subscription, is clearly encouraging to Spiegel. And for a company that’s still not profitable, having a new tool that’s going to drive people to the app and boost user count is key.

But in the past, Spiegel and Snap’s bets on technology haven’t always panned out. Let’s take a look at some of the company’s other ventures prior to My AI, and how they fared.

Apps and Games

Snap first got into gaming in April 2019 with Snap Games, and really accelerated its gaming programming during the coronavirus pandemic, with the goal of attracting more users to the app. The plan was to turn Snapchat into a mobile gaming powerhouse; both producing its own games and acting as a publisher for other studios’ content.

Initially, there was quite a demand for Snap’s games. In June 2020 the company said it had 100 million players since its launch.

But by February 2023, Snap abruptly shut down its gaming division in a cost-cutting bid. The company said in response to a disgruntled user’s tweet two months ago, “we'll be bringing more focus to other Snapchat products and features that will be beneficial to creators and content viewers.”

Pixy

The camera drone was announced last April and was supposed to be a compact flying device that can take off and land from a user’s hand. While in the air, it could film footage and transmit it back to the Snapchat app to share. Snap underestimated demand for Pixy, however, which led to months-long shipping delays.

At the time, drone footage was all the rage and Snap wanted to prove it could develop a reliable flying craft that could entertain camera enthusiasts while also showing off its technical prowess. But within four months it was shelved, with Spiegel telling staff in August 2022 to stop development.

The Wall Street Journal, which first reported on the cancellation, said Snap will continue to sell the existing iterations of Pixy for $230, but won’t make any new ones. Though it’s possible down the line Spiegel will revive the drone: He told The Verge last year, “maybe we would make more with version two if people love the original product.”

Spectacles

First introduced in 2016, Snap’s camera glasses were designed to be augmented reality shades that can capture photos and videos of augmented reality interactions around you and beam it back to the Snapchat app. Spiegel hoped that AR specs would be the fashion of the future, but they still haven’t hit the mainstream.

The glasses are still sold today – the Spectacles 3 that launched in 2019 retails for $380. But the fourth generation of the product, announced in May 2021, still isn’t available to consumers. Instead, as the Verge reported, the augmented reality glasses are being given to an uncertain number of creators who applied for access online.

Snap Lab, the division of the company making Spectacles, is quite secretive about their progress. What we do know is the people allowed to use the current-gen Spectacles have created some pretty cool stuff, including a virtual Super Mario Bros. course. According to Markman, Snap is still “fully committed to Spectacles and [are] narrowing our investment scope to focus on highly differentiated long-term research and development efforts.”

Original Content

Snap was previously heavily invested in creating original content, and at one point the company said one of its most popular shows, “The Dead Girls Detective Agency,” had 20 million unique viewers on the app.

The company created a number of shows to be watched on the Snapchat app, but by August 2022 Spiegel said Snap would stop production in a bid to pare back spending. At the time, the company announced it would cut 20% of its workforce, many of whom were on the content teams. Snap estimated that it would save $50 million annually in fixed content costs by axing Snap Originals. Snap hasn’t produced any original content since March 2022. - Samson Amore.

Editorial disclosure: Snap is an investor in dot.LA.

Editor’s note: This newsletter has been updated with comments from Snap.

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What’s New from Waymo 🚗 and Snapchat 👻

🔦 Spotlight

Happy Friday, LA!

Image Source: Waymo

In case you’ve been cooped up indoors or haven’t had a chance to leave the office this week, you might have missed the latest buzz—Waymo’s self-driving cars are now cruising all over LA! That’s right—Waymo One, the autonomous ride-hailing service, has officially expanded citywide, now covering nearly 80 square miles of Los Angeles. After months of testing and a waitlist, Angelenos can now book rides 24/7 in areas stretching from Santa Monica to Hollywood to the USC neighborhood. Early feedback has been overwhelmingly positive, with passengers rating the service 4.7/5. Riders are praising the smooth, safe experience—making it a game-changer for getting around the city, whether it’s for work, errands, or leisure.

Image Source: Snap

Meanwhile, Snapchat is stepping up its game with new features in its Family Center designed to boost family safety and connectivity. Parents can now request their teens' live location on Snap Map, stay informed about their location-sharing settings, and set travel notifications to get alerts when family members arrive or depart from key locations like home or school. These updates give families more control and peace of mind in managing their digital interactions.


🤝 Venture Deals

LA Companies

  • Camouflet, an AI-driven platform specializing in real-time pricing optimization, has raised a $3M Seed funding round from private investors to enhance its services. - learn more
  • Chaos Industries, a defense tech company specializing in advanced detection and monitoring systems, raised a $145M Series B funding round led by Accel to accelerate its development of critical national security technologies. - learn more
  • Radiant, a company specializing in advanced nuclear microreactors, raised a $100M Series C funding round led by DCVC. The funds will be used to complete the Kaleidos Development Unit and conduct testing at Idaho National Laboratory's DOME facility, aiming to bring factory-built microreactors to market. - learn more
  • Mundial Media, a company focused on contextual marketing for multicultural audiences, raised a $1.5M Pre-Seed extension round led by new and existing investors, with the funds aimed at advancing their Cadmus AI technology and expanding digital advertising offerings. - learn more

LA Venture Funds
  • Joyful Ventures participated in a seed funding round for Meatly, a UK-based company specializing in lab-grown pet food, though the exact amount raised has not been disclosed. - learn more
  • B Capital participated in a $200M Series C funding round for Writer, a full-stack generative AI platform that helps enterprises deploy secure and reliable AI solutions to address critical business challenges. - learn more
  • LFX Venture Partners participated in a US$30M Series C2 funding round for UniUni, a company transforming last-mile delivery for e-commerce through technology, and plans to use the capital to improve its platform and rapidly grow its operations. - learn more
  • Composition Capital participated in a $20M Series B funding round for Arbolus, an expert insights platform that connects investors and consultants with subject matter experts, to support Arbolus's expansion into the U.S. market - learn more
  • Type One Ventures co-led a Series A funding round for Lunar Outpost, a company specializing in lunar surface mobility, commercial space robotics, and space resources; the funds will support their active programs. - learn more
  • Trousdale Ventures participated in a $29M funding round for Starfish Space, a Seattle-based satellite servicing company that will use the funds to develop and launch its Otter spacecraft, designed to extend the operational life of satellites in geostationary orbit. - learn more
  • Plus Capital participated in a $20M Series A funding round for OneSkin, a San Francisco-based biotech company specializing in skin health treatments, with the funds aimed at expanding research, developing new formulas, and growing its presence in the anti-aging skincare industry. The company will also invest in its team and explore new sales channels. - learn more
  • Starshot Capital participated in a $10.5M Series A funding round for Ecolectro, a New York City-based green hydrogen company, to support the development of its scalable electrolyzer technology and make green hydrogen more accessible. - learn more
  • Navitas Capital participated in a $37M Series B funding round for SwiftConnect, a company that provides connected access solutions for buildings and spaces, to expand its network, scale operations, and support new product initiatives. - learn more
  • Griffin Gaming Partners led a €17M Seed funding round for BIT ODD, a Finnish gaming studio focused on creating mobile games that prioritize creativity and emotional depth over finance-driven metrics. - learn more
  • The K Fund participated in a $20M funding round for Homethrive, a caregiving solutions platform, and the funds will be used to help expand its AI-driven care navigation, improve personalized support, and enhance digital tools to increase engagement across various payer populations. - learn more

        LA Exits

        • Farm Dog, a Los Angeles-based company that provides a platform with tools to help agronomists streamline their work—offering features for field scouting, document management, and data integration to enhance productivity in agriculture—has been acquired by FarmQA. - learn more

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                Wonder Dynamics: Redefining the Animation Landscape
                Wonder Animation

                🔦 Spotlight

                Happy Friday, LA!

                Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

                Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

                What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

                As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

                With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030—reflecting a compound annual growth rate (CAGR) of about 5%—tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


                🤝 Venture Deals

                LA Companies

                • Evite, an online platform enabling users to design, send, and manage digital invitations and eCards with tools for event organization and guest tracking, has received a strategic growth investment from Francisco Partners to accelerate innovation and expand its product offerings. - learn more
                LA Venture Funds
                • F4 Fund participated in a $4.1M Pre-Seed funding round for Further, a platform designed to help first-time homebuyers determine how much home they can afford by providing personalized insights on interest rates and lender requirements, giving users a clear view of their purchasing power. - learn more
                • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
                • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
                • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

                    LA Exits

                    • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
                    • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industry—including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiency—will be acquired by Serve Robotics. - learn more

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                          Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

                          🔦 Spotlight

                          Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

                          ⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

                          Image Source: Dodgers

                          💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

                          Image Source: ChatGPT

                          🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

                          From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


                          🤝 Venture Deals

                          LA Companies

                          • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
                          LA Venture Funds
                          • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
                          • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
                          • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
                          • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

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