Nvidia chip exports helped broker Armenia-Azerbaijan peace deal

Armenia, a nation of roughly 3 million people, is emerging as an unlikely center for American artificial intelligence infrastructure after the Trump administration authorized Nvidia ↘ 1.47% chip exports to the country as part of US-brokered peace negotiations between Armenia and Azerbaijan.

Bloomberg reported Tuesday that San Francisco-based startup Firebird began operations last month at a data center in the town of Hrazdan, about 45 kilometers outside the capital Yerevan. The facility is projected to reach 300 megawatts of capacity and house more than 70,000 cutting-edge Nvidia chips by the end of 2027, which would rank it among the largest computing clusters in Europe.finance.yahoo+2

Chips as Diplomatic Currency

The data center played a direct role in advancing a peace agreement between Armenia and neighboring Azerbaijan, ending decades of conflict. Trump's team promised permission for Nvidia exports to advance conversations with Armenia on the way to a historic US-brokered accord with Azerbaijan, according to people involved in the talks cited by Bloomberg. The Wall Street Journal News Corp ↘ 3.58% first reported on the role of Nvidia chips in the deal.finance.yahoo

The preliminary accord, sealed by Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev, includes plans for the Trump Route for International Peace and Prosperity, a transport corridor across Armenia linking Azerbaijan with its exclave of Nakhchivan bordering Turkey. A State Department spokesperson said TRIPP aims to "strengthen the prosperity and security of Armenia and Azerbaijan and expand US commercial opportunities".caliber+1

Firebird has secured more than double the number of Nvidia processors that the US licensed for export to Saudi Arabia's Humain after months of negotiations with Riyadh. About one-fifth of the facility's computing power is reserved for domestic use, powering local research, government and startup ecosystems, with the remainder allocated to international firms including Perplexity AI.caspianpost+2

From Soviet Tech Hub to AI Ambitions

Armenia's relationship with Nvidia dates to 2019, when Pashinyan visited the chipmaker's Santa Clara headquarters. Nvidia established its Armenia presence in 2022, relocating engineers from Moscow to Yerevan after Russia's full-scale invasion of Ukraine. CEO Jensen Huang visited the country in 2023, helping lay the groundwork for Firebird's creation.caliber+1

The path was not straightforward. The Biden administration in 2023 began requiring US licenses for AI chip exports to Armenia and more than 40 other nations over concerns the country could serve as a conduit for restricted technology reaching Russia. Armenia responded by imposing restrictions on electronics exports to Moscow. "Armenia cannot afford to be placed under Western sanctions," Pashinyan said at the time.finance.yahoo

Vice President JD Vance, during a February visit to Yerevan, noted the chips deployed in Armenia "simply do not exist in most countries". An Nvidia spokesperson said the company invested in Armenia's future "long ago," adding that the country "can create economic opportunity, which in turn strengthens regional ties and can help support a foundation for enduring stability".caliber+1