IBM said it will invest more than $1 billion to establish a new business unit for Watson, as the tech giant hopes to get more revenue from the supercomputer system that beat humans on the television quiz show "Jeopardy."
The world's largest technology service provider said the IBM Watson Group will be headed by Michael Rhodin, who was previously senior vice president of IBM's software solutions group.
IBM said the investment includes a $100 million equity fund to boost innovation at its Watson Developers Cloud, which it opened up to external application developers last year.
(Read more: Watson not so elementary for IBM: Report)
The unit will have about 2,000 employees and will be based in New York City.
Watson, which beat expert "Jeopardy" quiz show contestants in 2011, is an artificial intelligence super computer system named after legendary International Business Machines President Thomas Watson.