HomeIBM CEO urges the Trump administration to increase — not cut — federal AI R&D funding
IBM CEO Advocates for Stronger Federal AI Funding Amid Budget Cuts
Arvind Krishna, CEO of IBM, isn’t mincing words when it comes to federal funding for AI and emerging technologies. Unlike the Trump administration’s push for deep cuts to scientific research, Krishna argues that increased investment in R&D is crucial for America’s future.
“We’ve been extremely vocal—both as a company and personally—that federally funded R&D should be expanded, not reduced,” Krishna told TechCrunch in a recent interview. “Our stance is clear: More funding drives economic growth, strengthens U.S. competitiveness, and fuels essential technologies.”
Federal AI Research Under Threat
The Trump administration’s proposed 2026 budget seeks to gut funding for key science agencies, including the National Science Foundation (NSF), where cuts could eliminate billions in AI research grants. The Directorate for Technology, Innovation and Partnerships (TIP), a critical AI research hub, has already faced steep reductions. Meanwhile, staffing cuts at the NSF and National Institute of Standards and Technology (NIST) have raised alarms across the tech sector.
Even more concerning? The potential dismantling of the CHIPS Act, a Biden-era initiative that boosted domestic semiconductor production—including AI-critical chips. The office managing CHIPS Act funds was largely defunded in March.
Tech Industry Pushes Back
Industry leaders aren’t staying silent. Groups like the Software and Information Industry Association have warned White House officials that slashing R&D budgets could cripple America’s AI leadership. The numbers back them up: Federally funded research delivers annual returns of 25-40%, outperforming even top-tier venture capital funds (15-27%).
Krishna points out that federal R&D spending is near historic lows as a percentage of GDP. “More investment in AI, quantum computing, and semiconductors isn’t just beneficial—it’s essential for long-term competitiveness,” he said.
IBM Feels the Impact
The cuts have already hit IBM. The company disclosed in its Q1 earnings call that $100 million in federal contracts—representing 5-10% of its consulting business—were abruptly canceled. Still, Krishna remains cautiously optimistic.
“I expect federal R&D funding for AI, quantum, and chips to rebound within a year,” he said. “The U.S. can’t afford to fall behind.”
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Comments (6)
0/500
![JonathanGreen]()
Étonnamment de la part d'un CEO privé, mais c'est logique pour IBM si l'investissement renforce l'écosystème dont ils profitent. Cependant, tout financement fédéral doit venir avec des garde-fous éthiques et une transparence absolue sur l'utilisation des fonds, pas juste pour booster les grandes entreprises. 😕
![AlbertEvans]()
Interessant, dass die IBM-Chefin sich für mehr öffentliche Gelder für KI ausspricht – sonst wollen die großen Tech-Konzerne doch immer weniger staatliche Einmischung. 🤔 Vielleicht geht's hier gar nicht nur um Innovation, sondern auch darum, wer die Regeln schreibt, während die Konkurrenz aus China rasant aufholt. Hoffentlich sorgt das dafür, dass die Forschung auch gemeinnützigen Zwecken zugutekommt und nicht nur den Big Playern.
![BenJackson]()
Interessante Position von IBM! 🤔 Aber wie realistisch ist es, dass eine Regierung, die grundsätzlich für Sparmaßnahmen steht, plötzlich mehr Geld in KI-Forschung steckt? Wirkt ein bisschen weltfremd... oder vielleicht nur PR?
![RonaldMitchell]()
IBM's CEO is spot on! Boosting AI R&D funding is crucial for staying ahead in tech. Cutting budgets now is like selling your car to save on gas—short-sighted and risky. 🚀
![LawrenceWilliams]()
IBM's CEO makes a bold case for boosting AI research funding—smart move! Cutting budgets now is like starving a rocket before launch. AI’s potential is massive, but without federal support, we’re risking a stall in progress. 🚀
![RyanSanchez]()
IBM's CEO is spot on—slashing AI research funds is like cutting the oxygen to innovation. More investment means faster breakthroughs, and we can't afford to lag behind in this tech race! 🚀
IBM CEO Advocates for Stronger Federal AI Funding Amid Budget Cuts
Arvind Krishna, CEO of IBM, isn’t mincing words when it comes to federal funding for AI and emerging technologies. Unlike the Trump administration’s push for deep cuts to scientific research, Krishna argues that increased investment in R&D is crucial for America’s future.
“We’ve been extremely vocal—both as a company and personally—that federally funded R&D should be expanded, not reduced,” Krishna told TechCrunch in a recent interview. “Our stance is clear: More funding drives economic growth, strengthens U.S. competitiveness, and fuels essential technologies.”
Federal AI Research Under Threat
The Trump administration’s proposed 2026 budget seeks to gut funding for key science agencies, including the National Science Foundation (NSF), where cuts could eliminate billions in AI research grants. The Directorate for Technology, Innovation and Partnerships (TIP), a critical AI research hub, has already faced steep reductions. Meanwhile, staffing cuts at the NSF and National Institute of Standards and Technology (NIST) have raised alarms across the tech sector.
Even more concerning? The potential dismantling of the CHIPS Act, a Biden-era initiative that boosted domestic semiconductor production—including AI-critical chips. The office managing CHIPS Act funds was largely defunded in March.
Tech Industry Pushes Back
Industry leaders aren’t staying silent. Groups like the Software and Information Industry Association have warned White House officials that slashing R&D budgets could cripple America’s AI leadership. The numbers back them up: Federally funded research delivers annual returns of 25-40%, outperforming even top-tier venture capital funds (15-27%).
Krishna points out that federal R&D spending is near historic lows as a percentage of GDP. “More investment in AI, quantum computing, and semiconductors isn’t just beneficial—it’s essential for long-term competitiveness,” he said.
IBM Feels the Impact
The cuts have already hit IBM. The company disclosed in its Q1 earnings call that $100 million in federal contracts—representing 5-10% of its consulting business—were abruptly canceled. Still, Krishna remains cautiously optimistic.
“I expect federal R&D funding for AI, quantum, and chips to rebound within a year,” he said. “The U.S. can’t afford to fall behind.”
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Ferrari taps IBM AI to cultivate F1 superfans
Two years ago, IBM noticed a significant gap in its sports partnership portfolio: Formula One.Formula One has become one of the world's most popular sports, especially in the U.S., where Netflix's "Drive to Survive" documented the professional lives
Executive warns Firefox risks future without Google search deal.
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Étonnamment de la part d'un CEO privé, mais c'est logique pour IBM si l'investissement renforce l'écosystème dont ils profitent. Cependant, tout financement fédéral doit venir avec des garde-fous éthiques et une transparence absolue sur l'utilisation des fonds, pas juste pour booster les grandes entreprises. 😕
Interessant, dass die IBM-Chefin sich für mehr öffentliche Gelder für KI ausspricht – sonst wollen die großen Tech-Konzerne doch immer weniger staatliche Einmischung. 🤔 Vielleicht geht's hier gar nicht nur um Innovation, sondern auch darum, wer die Regeln schreibt, während die Konkurrenz aus China rasant aufholt. Hoffentlich sorgt das dafür, dass die Forschung auch gemeinnützigen Zwecken zugutekommt und nicht nur den Big Playern.
Interessante Position von IBM! 🤔 Aber wie realistisch ist es, dass eine Regierung, die grundsätzlich für Sparmaßnahmen steht, plötzlich mehr Geld in KI-Forschung steckt? Wirkt ein bisschen weltfremd... oder vielleicht nur PR?
IBM's CEO is spot on! Boosting AI R&D funding is crucial for staying ahead in tech. Cutting budgets now is like selling your car to save on gas—short-sighted and risky. 🚀
IBM's CEO makes a bold case for boosting AI research funding—smart move! Cutting budgets now is like starving a rocket before launch. AI’s potential is massive, but without federal support, we’re risking a stall in progress. 🚀
IBM's CEO is spot on—slashing AI research funds is like cutting the oxygen to innovation. More investment means faster breakthroughs, and we can't afford to lag behind in this tech race! 🚀
