IBM 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.”

Exhibit at TechCrunch Sessions: AI

Showcase your innovation to 1,200+ decision-makers—without breaking the bank. Limited tables available until May 9.

Berkeley, CA | June 5 BOOK NOW