US Uses Nvidia Chips to Secure Armenia-Azerbaijan Peace Deal
A US administration reportedly used Nvidia's AI chips as leverage to secure a peace deal between Armenia and Azerbaijan. According to The Wall Street Journal, Washington granted expanded approval for chip purchases for an Armenian data centre project in exchange for the agreement.
The preliminary deal was reached last year following White House intervention, with a data centre being one of the components inside the agreement. Nvidia's advanced processors are export-controlled, requiring Washington's approval for sales outside a small group of trusted countries.
Firbird, the developer behind the Armenian data centre project, has built similar facilities in other countries, including Kazakhstan, where it signed a $10bn agreement with the government to build what was dubbed Data Center Valley. Nvidia executive Rev Lebaredian described chip diplomacy as 'front and center' for this administration.
The US has also used chip sales as leverage in other regions, including the Middle East, where it is planning to connect Azerbaijan's exclave of Nakhchivan to its mainland through rail lines and pipelines. However, details about what Azerbaijan received under the deal remain unclear.