IBM will spend $240 million over 10 years to develop an artificial intelligence research lab with the Massachusetts Institute of Technology, pooling the organizations' resources as competition intensifies to produce breakthroughs in the field. Bloomberg reports: The MIT-IBM Watson AI Lab will fund projects in four broad areas, including creating better hardware to handle complex computations and figuring out applications of AI in specific industries, the Armonk, New York-based company said Thursday in a statement. While IBM has always conducted long-term research internally, it decided AI was such a vast field that it needed to reach out for talent and ideas, said John Kelly, the head of International Business Machines Corp.'s research and cognitive solutions groups, which includes Watson products. While researchers will focus on long-term innovations in artificial intelligence, IBM will also be looking for developments -- a new medical imaging algorithm, say -- that it can immediately plug into its existing products. Big Blue expects to see results that boost its Watson-branded AI business in the next year or two, Kelly said. The plan is to change the focus and number of teams as needed to produce results, he said. The partnership underscores IBM's focus on building a business selling AI software, a strategy that requires clients to adopt such products and the company to develop offerings that add actual business value and are competitive with juggernauts in artificial intelligence, including Microsoft Corp. and Alphabet. IBM and MIT will jointly own the intellectual property that results from the projects conducted together. The company also has the option to buy out MIT for full ownership, Kelly said.