IBM CEO Arvind Krishna strongly urged the Trump administration to enhance federal funding for artificial intelligence research, countering recent government proposals aiming at significant budget cuts. Krishna emphasized in an interview that both he and IBM are long-standing advocates for increasing federal support in AI research and development, arguing such investments play a critical role in the United States’ economic growth and global competitiveness.
Facing stark cuts as envisioned by President Trump’s fiscal policies, several federal bodies including the Directorate for Technology, Innovation, and Partnerships (TIP), housed under the National Science Foundation (NSF), have experienced substantial budget reductions. The proposed administration budget for fiscal year 2026 specifically calls for slashing over half of the NSF’s total funding, branding certain expenditures as unnecessary or politically driven. These initiatives put at risk billions of dollars typically allocated to vital research programs not only at NSF but also affecting agencies such as the National Institutes of Health and the Department of Energy.
In addition, President Trump has signaled intentions to terminate the CHIPS Act, an initiative initiated during the Biden administration designed to accelerate domestic semiconductor manufacturing, including the development of advanced chips crucial for AI technology. The federal office managing the CHIPS Act saw significant staffing reductions earlier in March, raising industry alarms about potential setbacks in this strategic sector.
Tech organizations, including the Software and Information Industry Association, have expressed clear concerns, warning Trump-appointed AI coordinator David Sacks and Commerce Secretary Howard Lutnick that continued cuts could severely diminish America’s leadership in artificial intelligence.
Krishna underscored that current federal R&D investment levels, measured as a percentage of GDP, have reached historically low points, despite producing substantial economic benefits. Citing analysis by the U.S. Joint Economic Committee, he noted federal research spending consistently delivers returns far exceeding those of even top-performing venture capital funds.
Despite IBM being directly affected—suffering cancellations of several federal contracts amounting to approximately $100 million in future revenue—the CEO expressed optimism regarding future government investment. He voiced confidence that within a year, federal spending on AI, quantum research, and semiconductors would return to current or higher levels, suggesting an eventual policy shift back toward increased funding.
