IBM establishes business unit to leverage Watson supercomputer

9 Jan 2014

Tech titan IBM is infusing US$1bn into a new business unit called the IBM Watson Group with an aim to generate more revenue from its supercomputer system Watson.

Michael Rhodin, the former senior vice-president of IBM’s software solutions group, will head the new unit to be based in New York City that will employ about 2,000 people, Reuters reported.

The establishment of the unit follows high demand for cognitive computing, IBM said.

Watson – named after former IBM president Thomas Watson – is an artificial intelligence supercomputer system that uses analytics and natural language capabilities to process information similar to how humans think.

Under the Watson Group, IBM will offer the technology to businesses, industries, and consumers, Reuters reported. The technology, which can power consumer and enterprise apps, will be delivered over the cloud.

IBM’s investment includes a US$100m equity fund to enhance innovation at its Watson Developers Cloud.

Tina Costanza was a journalist and sub-editor at Silicon Republic

editorial@siliconrepublic.com