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

IBM CEO Arvind Krishna has urged the Trump Administration to increase federal funding for AI R&D instead of implementing cuts. He criticized the administration's budget proposal, which threatens significant reductions to funding for key AI research. Krishna emphasized the economic and competitive advantages of increased R&D funding, highlighting its historical returns and potential impacts on technology essential for the future.

Key points

  • 1. Arvind Krishna, IBM CEO, advocates for increased federal funding for AI R&D during an interview.
  • 2. The Trump Administration is proposing deep cuts to federal grantmaking and scientific research programs.
  • 3. The Directorate for Technology, Innovation, and Partnerships (TIP) has faced budget reductions, affecting research in AI.
  • 4. Trump’s budget for FY 2026 could slash over half of the NSF’s funding, impacting AI R&D projects.
  • 5. Industry groups warn that funding reductions would diminish U.S. global leadership in AI.
  • 6. Federally funded research has annual returns of 25-40%, outperforming top VC returns of 15-27%.
  • 7. IBM reported cancellations of federal contracts amounting to $100 million due to these funding cuts.

Why it matters

  • This call for increased funding reflects ongoing discussions about federal investments in technology amid global competition, notably in the AI field.
  • Historically, federal R&D investments have driven technological advancements, a trend that experts argue is essential for maintaining U.S. leadership in innovation.
  • The CHIPS Act, aimed at boosting domestic semiconductor manufacturing, ties into these discussions, particularly with the potential end of support by the Trump Administration.

Krishna's plea emphasizes that increased federal funding for AI R&D is crucial for economic growth and maintaining competitive advantages, amidst significant proposed budget cuts that could hinder technological advancements in the United States.