IBM CEO urges the Trump Administration to increase — not cut — federal AI R&D funding

Arvind Krishna, the CEO of IBM, believes that federal funding for AI and related technologies should be increased, contrary to the current trend of budget cuts in R&D.

Krishna emphasized the importance of federally funded R&D in an interview with DailyTech, stating that both IBM as a company and himself personally advocate for increased funding in this area.

The Trump administration has proposed significant cuts to federal grantmaking and scientific research programs, including key offices responsible for AI research like the Directorate for Technology, Innovation, and Partnerships (TIP).

The proposed budget for fiscal year 2026 aims to slash funding for the National Science Foundation (NSF) by over half, jeopardizing AI R&D projects and other scientific endeavors supported by federal agencies.

Additionally, there are concerns about the potential impact of cutting funding for the CHIPS Act, which aims to boost domestic semiconductor production, including specialized chips for AI applications.

Industry groups have warned that these reductions could hinder America’s global leadership in AI, as federally funded research has proven to yield significant economic returns and drive technological innovation.

Krishna expressed optimism that federal R&D funding for AI, quantum computing, and semiconductors will improve within a year, despite the challenges faced by companies like IBM due to canceled federal contracts.

He highlighted the positive impact of increased federally funded R&D on the economy, competitiveness, and technological advancements essential for the future.

Overall, Krishna expects a positive shift in federal R&D funding in the near future, emphasizing the importance of investing in key technologies for sustainable growth and innovation.