US Wields Nvidia Chips as Bait in Armenia-Azerbaihan Conflict Talks

The US has used Nvidia chips as leverage in talks to resolve the Armenia-Azerbaijan conflict. The move is part of what US officials have described as 'chip diplomacy,' which involves using access to advanced technology as a bargaining chip in international negotiations.

Last year, the Trump administration signed a memorandum with Armenia to expand US-Armenian technology and trade ties. One of the key projects resulting from this agreement is the Firebird data center, which will be built in Hrazdan, around 30 miles from the Azerbaijan border.

The project, expected to cost over $5 billion, will house 70,000 Nvidia AI servers, including Grace Blackwell and Vera Rubin systems. This will provide Armenia with a significant boost in computing capacity, reaching around 300 megawatts by the end of next year.

Nvidia's CEO Jensen Huang regularly speaks with US President Donald Trump and advises his administration on AI policy. The close ties between the White House and Nvidia have raised questions about the role of technology in international relations and diplomacy.