IBM, a US-based computer maker, is investing $1bn in establishing a new business unit, the Watson Group, including $100 million in venture investments to support an ecosystem of entrepreneurs developing Watson-powered apps. Based in New York’s Silicon Alley, IBM Watson Group will be dedicated to the the development and commercialization of cloud-delivered cognitive innovations, leveraging off IBM’s Watson supercomputer, which uses natural language processing and analytics, and which won the television quiz show Jeopardy! nearly three years ago.
IBM states that since then, Watson is “now delivered from the cloud and able to power new consumer and enterprise apps. Watson is 24 times faster, smarter with a 2,400 percent improvement in performance, and 90 percent smaller – IBM has shrunk Watson from the size of a master bedroom to three stacked pizza boxes.”
The IBM Watson Group will be led by Michael Rhodin, who most recently served as Senior Vice President, IBM Software Solutions Group. Rhodin said: “IBM has transformed Watson from a quiz-show winner, into a commercial cognitive computing breakthrough that is helping businesses engage customers, healthcare organizations personalize patient care, and entrepreneurs build businesses. Watson is one of the most significant innovations in IBM’s 100 year history, and one that we want to share with the world. With these investments we strive to make new markets, reach new buyers and transform industries and professions.”
Three of IBM’s business partners plan to go to market in 2014 with Watson apps: Fluid, to transform how consumers shop; MD Buyline, to help hospitals procure devices; and Welltok, to enable health plans to engage their members.