Electronics giant Bosch and artificial intelligence-focused crypto protocol Fetch.ai are teaming up to create a foundation called the Fetch.ai Foundation.

The Fetch.ai Foundation will research and develop Web3 (the third generation of the internet powered by the blockchain) technology for real-world use cases in areas such as mobility, industry and consumers. It will have a three-tier governance structure and be inspired by the Linux Foundation's decentralized innovation model.

Bosch and Fetch.ai will lead the foundation's management board and look to expand it with other yet-unnamed industry participants.

"Bosch will help us fast track Web3 adoption in the industry and encourage other industry players to join us in this journey," Fetch.ai founder Humayun Sheikh said in a prepared statement. "More industry applications will also bring new business opportunities for the existing tech entrepreneurs in the Fetch.ai ecosystem.”

The foundation aims to encourage participant growth and contributions from new participants while enhancing currently-used technical applications based on active contributions and participation from its members.

Fetch.ai's FET token jumped 12% to nearly 5 cents in the past 24 hours, CoinGecko data shows. Fetch.ai did not immediately respond to requests for additional comments.

Formation of the new foundation comes as artificial intelligence-focused cryptocurrencies gain favor among investors and traders.