United States uses Nvidia chips to broker Armenia-Azerbaijan peace deal

The United States has utilized access to advanced Nvidia semiconductors as a diplomatic tool to facilitate a peace agreement between Armenia and Azerbaijan. Signed in Washington on August 8, 2025, the deal marks a documented instance of ‘chip diplomacy,’ where high-end AI hardware was used as an incentive to resolve long-standing regional tensions.

To secure Armenia’s participation in the peace process, the U.S. administration granted expanded export licenses for advanced Nvidia chips. This support is central to the development of the Firebird data center in Hrazdan, an Armenian project valued at over $5 billion. The facility is expected to house approximately 70,000 Nvidia servers by the end of 2027 and requires a power capacity of roughly 300 megawatts.

The agreement also involves the creation of a trade and transit corridor, referred to as the ‘Trump Route,’ intended to connect Azerbaijan to the Nakhchivan enclave through Armenian territory. This infrastructure aims to increase economic interdependence in the South Caucasus. Observers note that high-tech chips have transitioned from industrial components to strategic assets comparable to oil or military hardware in international negotiations.