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AT&T said on Monday afternoon that it had withdrawn its $39 billion takeover bid for T-Mobile USA, acknowledging that it could not overcome opposition from the Obama administration to creating the nation’s biggest cellphone service provider.

The company said in a statement that it would continue to invest in wireless spectrum, but could not overcome resistance from both the Justice Department and the Federal Communications Commission.

It's developed a core technology platform, known as Watson, which is a cloud-based system of services that not only identifies words but interprets meaning and context to deliver more accurate results. The system itself is built on servers that model and compare speech to recorded voices. Watson is an evolving platform that with more data is able to adapt and learn so that it continues to improve accuracy and also cross reference data to use speech as input for getting to all kinds of communication and data.

"We are really on the cusp of a technology revolution in speech and language technology," said Mazin Gilbert, executive director of speech and language technology at AT&T Labs. "It's no longer about simply trying to get the words right. It's about adding intelligence to interpret what is being said and then using that to apply to other modes of communication, such as text or video."