IBM’s big boss, Arvind Krishna, isn’t mincing words when it comes to federal R&D funding—especially for AI and tech. He’s all in for pumping more money into these areas, which puts him squarely at odds with the Trump Administration’s recent play to slash those budgets. During a chat, Krishna didn’t just talk the talk; he laid out why this funding is the lifeblood of the economy, keeping the U.S. ahead in the tech race and sparking the next big things. (And let’s be honest, who doesn’t want more cool tech?)
But here’s the kicker: the proposed cuts aren’t just nickels and dimes. They’re targeting heavy hitters like the Directorate for Technology, Innovation, and Partnerships, the National Institute of Standards and Technology, and the NSF. If these cuts go through, billions earmarked for AI R&D could vanish into thin air. And if that’s not enough, the CHIPS Act—you know, the one that’s supposed to boost U.S. semiconductor production (a big deal for AI)—might get the axe too. Talk about shooting yourself in the foot.
Industry folks are sounding the alarm, worried the U.S. might lose its AI crown to other countries. And they’ve got a point—federal research isn’t just busywork. It’s a goldmine, with returns that leave even the slickest VC funds in the dust (we’re talking 25-40% annually, according to the U.S. Joint Economic Committee).
Even IBM’s feeling the pinch, with 15 contracts getting the boot and a cool $100 million down the drain. But Krishna’s not throwing in the towel. He’s betting on a turnaround for federal R&D funding, especially in AI, quantum computing, and semiconductors, within the next year. Here’s hoping he’s right.
