IBM CEO Calls for More Federal AI Funding, Not Cuts
▼ Summary
– IBM CEO Arvind Krishna advocates for increased federal R&D funding for AI and related technologies, calling it crucial for economic growth and U.S. competitiveness.
– The Trump administration has proposed deep cuts to federal research programs, including AI-focused offices like TIP and agencies like NSF, labeling some spending as wasteful.
– The CHIPS Act, which supports domestic semiconductor production for AI, is at risk as its funding office was gutted, and Trump has threatened to end it.
– Tech industry groups warn that federal R&D cuts could undermine U.S. leadership in AI, citing high economic returns (25%-40%) from such investments.
– IBM has lost $100 million in future payments due to canceled federal contracts, though Krishna remains optimistic about increased R&D funding within a year.
IBM’s CEO Arvind Krishna is pushing for expanded federal investment in artificial intelligence research, warning that current budget cuts threaten America’s technological leadership. Speaking with TechCrunch, Krishna emphasized that both he and IBM firmly support increasing government-backed R&D, calling the stance “unequivocal” and critical for economic growth.
Recent policy shifts have moved in the opposite direction. The Trump administration’s proposed 2026 budget seeks to halve funding for the National Science Foundation (NSF), targeting programs it labels as non-essential. This follows earlier reductions at key agencies like the National Institute of Standards and Technology, where AI research initiatives face significant rollbacks. The administration has also signaled plans to dismantle the CHIPS Act, which supports domestic semiconductor manufacturing—a cornerstone for AI hardware development.
Industry leaders argue these cuts could undermine the U.S. in the global AI race. Federally funded research delivers returns of 25-40% annually, outperforming even top-tier venture capital investments, according to the U.S. Joint Economic Committee. Tech coalitions have urgently appealed to White House officials, stressing that reduced funding jeopardizes innovation pipelines.
IBM has already felt the impact, with $100 million in federal contracts canceled during Q1 2024. While government work represents less than 10% of IBM’s consulting revenue, Krishna described the broader implications as alarming. He noted that federal R&D spending as a percentage of GDP sits near historic lows, despite its proven role in driving breakthroughs.
Still, Krishna remains cautiously hopeful. He predicts federal support for AI, quantum computing, and semiconductors could rebound within a year. “These technologies aren’t just about corporate profits—they’re foundational to national competitiveness,” he said. With other tech giants echoing similar concerns, the debate over research funding is likely to intensify as AI’s economic and strategic importance grows.
(Source: TechCrunch)
