US Approves Nvidia Chip Transfer for Armenia's $500 Million AI Supercomputing Hub

Historic Approval for Armenian AI Initiative

The United States government has granted approval for the export of advanced Nvidia chips to Armenia, paving the way for a significant $500 million initiative to establish an artificial intelligence (AI) and supercomputer hub in the country. This landmark decision follows direct lobbying efforts by Armenian Prime Minister Nikol Pashinyan and is set to position Armenia as a key player in the regional AI landscape.

The project, a collaborative effort involving the Armenian government, US tech giant Nvidia, AI cloud firm Firebird (with offices in San Francisco and Yerevan), and local telecoms leader Team Group, was initially announced at the Viva Technology conference in Paris. It represents the largest technological investment in the South Caucasus.

Project Scope and Technology

The planned facility, described as the first large-scale AI data center in the South Caucasus, will house thousands of Nvidia Blackwell GPUs and be designed to scale to over 100 megawatts of capacity. Additionally, Dell Technologies' PowerEdge servers will be utilized to support the high-performance AI infrastructure. The first phase of the project is anticipated to become operational in the second quarter of 2026.

Firebird CEO and co-founder Razmig Hovaghimian emphasized the project's role in 'building a launchpad for innovation,' stating, 'We will invest in novel models, in robotics and the sciences in partnership with leading universities from around the world and build the capacity to incubate the next generation of innovators in Armenia.' Nvidia CEO Jensen Huang added that 'AI factories are the infrastructure of the 21st century,' and this collaboration 'will help build foundational AI capacity and unlock new opportunities for innovation and economic growth across the region.'

Strategic Importance and Government Support

Prime Minister Nikol Pashinyan has hailed the initiative as the 'Stargate of Armenia,' underscoring its potential to transform the country's technological landscape and establish it as an AI and IT leader in the Caucasus. The Armenian government has pledged comprehensive support, including allocating land, offering tax incentives, and streamlining regulatory procedures to foster a robust digital economy.

The US approval marks a shift in policy, as the former US President Joe Biden's administration had previously classified Armenia as a second-tier country under the 'AI diffusion rule,' limiting high-performance chip exports. These restrictions were subsequently lifted under President Donald Trump's administration. Prime Minister Pashinyan publicly thanked President Trump, noting, 'I am glad and grateful that the White House responded quickly and appropriately. As a result, the project will now confidently move forward.'

The data center plans to allocate 20% of its computing capacity to domestic Armenian companies, with the remaining 80% to be utilized by US-based firms operating in the region. This structure aims to integrate Armenia into US-anchored AI supply chains while ensuring local access to advanced computing resources.

Partnerships and Future Outlook

The Afeyan Foundation for Armenia, led by Noubar Afeyan, is joining as a founding investor, further strengthening diaspora engagement in the country's tech sector. This initiative follows a Memorandum of Understanding on AI and semiconductor cooperation signed between the US and Armenian governments on August 8, 2025, signaling a deeper strategic alignment. The project is seen as supporting US diplomatic strategy in the Caucasus, aiming to counter regional influences and align with American strategic interests.