US-Armenia semiconductor and AI infrastructure cooperation

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.

Following these diplomatic developments, Armenia is emerging as a significant hub for American artificial intelligence infrastructure. The country now hosts two operational AI data center facilities utilizing NVIDIA’s latest Blackwell GPUs. Firebird AI launched its flagship facility in Hrazdan in August 2026, with investment expanding from $500 million to $4 billion. A second facility, operated by Eleveight AI, opened in Gagarin in June 2026. This growth is supported by a 2025 US-Armenia memorandum on semiconductors and AI, which facilitated the necessary US export licenses for advanced hardware.