The rise of AI, particularly generative AI and large language models (LLMs), is placing unprecedented demands on our computing infrastructure. Traditional hybrid cloud systems are struggling to keep pace with the sheer scale and complexity of these workloads. This white paper, a collaboration between IBM Research and the University of Illinois Urbana-Champaign within the IBM-Illinois Discovery Accelerator Institute (IIDAI), proposes a radical transformation of the hybrid cloud to meet these emerging needs. Current systems face challenges in complexity, affordability, and adaptability. Managing diverse hardware, ensuring cost-effectiveness, and adapting to rapidly evolving AI models require new approaches. IIDAI envisions a future hybrid cloud that is not just bigger, but smarter and more efficient. Imagine a system where AI agents, powered by LLMs, act as an intuitive interface, orchestrating tasks, optimizing resources, and even debugging issues across the entire stack. This LLM-as-an-Abstraction (LLMaaA) approach would allow users to interact with complex systems using natural language, simplifying development and deployment. Underlying this intelligent interface are several key innovations. THINKagents, a new agentic AI framework, will enable AI agents to collaborate more effectively, sharing knowledge and specializing in tasks. Advanced AI compilers and runtimes will optimize code for diverse hardware, including emerging accelerators and quantum computers. Adaptive middleware and unified control planes will manage resources dynamically across the edge and cloud, ensuring efficient data flow and workload distribution. This transformation extends to the hardware itself. Emerging technologies like CXL and UAL, coupled with near-data processing capabilities, will break down the memory wall and optimize data movement for large models. Co-design of hardware and software will be crucial for maximizing efficiency and performance. IIDAI's vision is not just theoretical. They are actively developing prototypes and benchmarks, focusing on real-world applications like materials discovery and climate modeling. These applications demonstrate the potential of a transformed hybrid cloud to accelerate scientific breakthroughs and address critical global challenges. As quantum computing matures, it will become an integral part of this ecosystem, enabling quantum-accelerated simulations and unlocking new possibilities in scientific discovery. The future of AI depends on a reimagined hybrid cloud. IIDAI's vision offers a roadmap for building a system that is not just powerful, but also accessible, adaptable, and sustainable, paving the way for a new era of AI-driven innovation.