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America Is Using GPUs as Geopolitical Currency, Starting With Armenia

MarketDash Editorial Team
17 days ago
The U.S. just approved export of 6,144 advanced NVIDIA GPUs to Armenia, placing the small nation alongside Saudi Arabia and UAE in an exclusive club. It's a signal that AI hardware has become more than technology—it's diplomatic leverage in a new era of strategic partnerships.

Here's something you probably didn't see coming: Armenia just became one of the most exclusive members of a very particular club. Not a military alliance or trade bloc, but something arguably more valuable in 2025—a country cleared by the United States to import thousands of the world's most advanced AI chips.

NVIDIA Corp (NVDA) GPUs have quietly transformed from specialized computing hardware into full-blown geopolitical bargaining chips. And this week's development proves it. San Francisco-based startup Firebird AI received U.S. government approval to export 6,144 Blackwell GPUs to Armenia, enough computing horsepower to build the region's first large-scale AI factory.

Think about that for a second. Armenia, a landlocked nation of three million people nestled between Russia and Iran, just got access to technology that most countries are desperately competing for. The same chips that power cutting-edge generative AI are now flowing to a former Soviet republic that most Americans probably couldn't locate on a map.

Welcome to the New Tier System

The approval places Armenia in rare company alongside Saudi Arabia and the UAE as one of the few nations to secure U.S. clearance for advanced AI hardware this year. But here's what makes it interesting: unlike the wealthy Gulf states with their state-funded AI ambitions and sovereign wealth funds, Armenia's tech industry grew organically from a grassroots movement fueled by its recent conflict with Azerbaijan, startup ambitions, and a globally connected diaspora network.

This marks a meaningful shift in U.S. export policy. Washington is now willing to grant what it calls Tier 2 countries—nations that aren't formal military allies—access to advanced AI technology if they align with American strategic interests. It's a new playbook for influence that doesn't require decades-old defense treaties or massive military installations.

Sergei Shestakov, CEO and Founder of MPP Insights, a data engineering and analytics consulting firm with an R&D office in Armenia, called it "a paramount moment for Armenia's high-tech industry. The new AI Factory will have an impact in a most profound way not only on Armenia but also on neighboring countries."

He added that the deal "signifies a new level of cooperation between the Republic of Armenia, with its creative startup scene, and the United States, the world leader in AI Infrastructure."

How a Small Country Checked All the Boxes

Armenia didn't stumble into this opportunity. The country has systematically met every criterion to enable this deal. It pivoted West by signing a Trump-brokered peace deal with Azerbaijan and committing to the proposed Trump Route for International Peace and Prosperity (TRIPP) trade corridor linking Azerbaijan with its exclave, Nakhchivan. Its location between Russia and Iran makes it geopolitically valuable, a position amplified by its influential U.S. diaspora.

Rev Lebaredian, NVIDIA's VP of Omniverse and simulation technology, put it in perspective at Digitec Expo in Yerevan: "There is great demand for these factories everywhere in the world, and we will have one in Armenia, which is a remarkable thing for a small country of three million to be one of the first in the world to have one. Building AI factories alone is a multi-trillion-dollar industry, and those who know how to build and operate AI factories have an advantage over everyone else."

The $500 Million Supercomputing Hub

NVIDIA first announced its strategic collaboration with Firebird and Armenia in June as a $500 million public-private partnership to build the region's most powerful supercomputing hub. Phase 1 will develop a 100-megawatt facility using Dell Technologies Inc (DELL) servers and NVIDIA's B200 GPUs. Once complete, Armenia will be roughly on par with the United Kingdom in terms of AI computing power. Let that sink in—a country smaller than Maryland matching Britain's AI infrastructure.

"Receiving permission to export NVIDIA GPUs to Armenia was the cornerstone of this project, so now we have the full green light and are in execution mode to build this data center and make it live by Q2 next year," Firebird AI Co-Founder Alexsandr Yesayan told reporters.

The project will allocate 80% of its computing power to U.S.-based firms operating in the region and 20% to domestic companies. That split is notable—it essentially ensures American companies get priority access while allowing Armenia to develop its own AI capabilities.

Turning Soviet-Era Energy Into Digital Exports

Here's where it gets clever. Armenia is emerging as something of a perfect test case for AI factory infrastructure. Closed borders with Turkey and Azerbaijan have severely constrained the country's export capacity, but AI enables the digital export of excess electricity. Armenia has billions in unused Soviet-era energy infrastructure that can power the facility, according to Yesayan.

"While Armenia can produce the energy, given its current situation, it does not have the physical infrastructure to export it through built lines," Yesayan explained. "Through GPUs, you can transfer electricity through the internet and sell it anywhere."

It's an elegant solution to a geographic problem. You can't truck electricity across closed borders, but you can convert it into computing power and sell that anywhere in the world with an internet connection. Yesayan says the border needs to be open for physical trade, but they're exploring an alternative route, recognizing that the future wave of exports will be through electricity via AI tokens, potentially providing a new high-value export for Armenia and other nations.

"This is a U.S. company doing a project in Armenia, which is our initial phase. Then, we want to replicate this in other countries."

The Relationship That Made It Possible

On paper, Armenia is an unlikely candidate compared to wealthy Gulf states competing for GPU exports. This collaboration was the culmination of a multi-year relationship built on strategic timing, geopolitical shifts, and Armenia's positioning as a growing tech hub.

Armenia's connection to NVIDIA dates back to 2019, when Prime Minister Nikol Pashinyan became the first head of state to visit the company's headquarters—back when it wasn't the world's most valuable company.

"It just so happens that the Armenian Prime Minister is the first head of state to come to NVIDIA," Lebaredian noted. "Now they are all lining up."

NVIDIA established its presence in 2022 by relocating its Russian office to Yerevan, led by Lebaredian, following the invasion of Ukraine. CEO Jensen Huang made a reciprocal visit to Armenia in 2023, meeting with Pashinyan to discuss the partnership, laying the foundation for the approval seen this week.

America's Answer to Belt and Road

While the deal is comparably small next to proposed AI factory deals in Saudi Arabia and the UAE, the agreement signals a shift in American diplomatic priorities that supersedes sheer size.

Peter Bilzerian, a data engineering executive and investor focused on Armenia's emerging AI ecosystem, framed it bluntly: "This investment compresses years of Armenia's development into a single step forward. When the U.S. places high-end NVIDIA GPUs in a small, but tech-savvy country, it's building a long-term bridge. This is America's answer to the Belt and Road Initiative."

He continued: "Compute access is the new soft power. With real GPU capacity, Armenia can move from simple software to owning the full data pipeline, from ingestion to model deployment, making Armenia one of the most powerful data engineering hubs."

That's the real story here. China spent years building roads, ports, and railways to extend its influence. America is trying something different—extending influence through compute infrastructure and AI capabilities. Instead of physical highways, it's building digital ones. And unlike traditional infrastructure projects that take decades to show returns, AI factories can generate value almost immediately while creating deep technological dependencies.

Whether this becomes a replicable model for American soft power remains to be seen. But Armenia just became the first test case, and the world is watching.

Back to News

America Is Using GPUs as Geopolitical Currency, Starting With Armenia

MarketDash Editorial Team
17 days ago
The U.S. just approved export of 6,144 advanced NVIDIA GPUs to Armenia, placing the small nation alongside Saudi Arabia and UAE in an exclusive club. It's a signal that AI hardware has become more than technology—it's diplomatic leverage in a new era of strategic partnerships.

Here's something you probably didn't see coming: Armenia just became one of the most exclusive members of a very particular club. Not a military alliance or trade bloc, but something arguably more valuable in 2025—a country cleared by the United States to import thousands of the world's most advanced AI chips.

NVIDIA Corp (NVDA) GPUs have quietly transformed from specialized computing hardware into full-blown geopolitical bargaining chips. And this week's development proves it. San Francisco-based startup Firebird AI received U.S. government approval to export 6,144 Blackwell GPUs to Armenia, enough computing horsepower to build the region's first large-scale AI factory.

Think about that for a second. Armenia, a landlocked nation of three million people nestled between Russia and Iran, just got access to technology that most countries are desperately competing for. The same chips that power cutting-edge generative AI are now flowing to a former Soviet republic that most Americans probably couldn't locate on a map.

Welcome to the New Tier System

The approval places Armenia in rare company alongside Saudi Arabia and the UAE as one of the few nations to secure U.S. clearance for advanced AI hardware this year. But here's what makes it interesting: unlike the wealthy Gulf states with their state-funded AI ambitions and sovereign wealth funds, Armenia's tech industry grew organically from a grassroots movement fueled by its recent conflict with Azerbaijan, startup ambitions, and a globally connected diaspora network.

This marks a meaningful shift in U.S. export policy. Washington is now willing to grant what it calls Tier 2 countries—nations that aren't formal military allies—access to advanced AI technology if they align with American strategic interests. It's a new playbook for influence that doesn't require decades-old defense treaties or massive military installations.

Sergei Shestakov, CEO and Founder of MPP Insights, a data engineering and analytics consulting firm with an R&D office in Armenia, called it "a paramount moment for Armenia's high-tech industry. The new AI Factory will have an impact in a most profound way not only on Armenia but also on neighboring countries."

He added that the deal "signifies a new level of cooperation between the Republic of Armenia, with its creative startup scene, and the United States, the world leader in AI Infrastructure."

How a Small Country Checked All the Boxes

Armenia didn't stumble into this opportunity. The country has systematically met every criterion to enable this deal. It pivoted West by signing a Trump-brokered peace deal with Azerbaijan and committing to the proposed Trump Route for International Peace and Prosperity (TRIPP) trade corridor linking Azerbaijan with its exclave, Nakhchivan. Its location between Russia and Iran makes it geopolitically valuable, a position amplified by its influential U.S. diaspora.

Rev Lebaredian, NVIDIA's VP of Omniverse and simulation technology, put it in perspective at Digitec Expo in Yerevan: "There is great demand for these factories everywhere in the world, and we will have one in Armenia, which is a remarkable thing for a small country of three million to be one of the first in the world to have one. Building AI factories alone is a multi-trillion-dollar industry, and those who know how to build and operate AI factories have an advantage over everyone else."

The $500 Million Supercomputing Hub

NVIDIA first announced its strategic collaboration with Firebird and Armenia in June as a $500 million public-private partnership to build the region's most powerful supercomputing hub. Phase 1 will develop a 100-megawatt facility using Dell Technologies Inc (DELL) servers and NVIDIA's B200 GPUs. Once complete, Armenia will be roughly on par with the United Kingdom in terms of AI computing power. Let that sink in—a country smaller than Maryland matching Britain's AI infrastructure.

"Receiving permission to export NVIDIA GPUs to Armenia was the cornerstone of this project, so now we have the full green light and are in execution mode to build this data center and make it live by Q2 next year," Firebird AI Co-Founder Alexsandr Yesayan told reporters.

The project will allocate 80% of its computing power to U.S.-based firms operating in the region and 20% to domestic companies. That split is notable—it essentially ensures American companies get priority access while allowing Armenia to develop its own AI capabilities.

Turning Soviet-Era Energy Into Digital Exports

Here's where it gets clever. Armenia is emerging as something of a perfect test case for AI factory infrastructure. Closed borders with Turkey and Azerbaijan have severely constrained the country's export capacity, but AI enables the digital export of excess electricity. Armenia has billions in unused Soviet-era energy infrastructure that can power the facility, according to Yesayan.

"While Armenia can produce the energy, given its current situation, it does not have the physical infrastructure to export it through built lines," Yesayan explained. "Through GPUs, you can transfer electricity through the internet and sell it anywhere."

It's an elegant solution to a geographic problem. You can't truck electricity across closed borders, but you can convert it into computing power and sell that anywhere in the world with an internet connection. Yesayan says the border needs to be open for physical trade, but they're exploring an alternative route, recognizing that the future wave of exports will be through electricity via AI tokens, potentially providing a new high-value export for Armenia and other nations.

"This is a U.S. company doing a project in Armenia, which is our initial phase. Then, we want to replicate this in other countries."

The Relationship That Made It Possible

On paper, Armenia is an unlikely candidate compared to wealthy Gulf states competing for GPU exports. This collaboration was the culmination of a multi-year relationship built on strategic timing, geopolitical shifts, and Armenia's positioning as a growing tech hub.

Armenia's connection to NVIDIA dates back to 2019, when Prime Minister Nikol Pashinyan became the first head of state to visit the company's headquarters—back when it wasn't the world's most valuable company.

"It just so happens that the Armenian Prime Minister is the first head of state to come to NVIDIA," Lebaredian noted. "Now they are all lining up."

NVIDIA established its presence in 2022 by relocating its Russian office to Yerevan, led by Lebaredian, following the invasion of Ukraine. CEO Jensen Huang made a reciprocal visit to Armenia in 2023, meeting with Pashinyan to discuss the partnership, laying the foundation for the approval seen this week.

America's Answer to Belt and Road

While the deal is comparably small next to proposed AI factory deals in Saudi Arabia and the UAE, the agreement signals a shift in American diplomatic priorities that supersedes sheer size.

Peter Bilzerian, a data engineering executive and investor focused on Armenia's emerging AI ecosystem, framed it bluntly: "This investment compresses years of Armenia's development into a single step forward. When the U.S. places high-end NVIDIA GPUs in a small, but tech-savvy country, it's building a long-term bridge. This is America's answer to the Belt and Road Initiative."

He continued: "Compute access is the new soft power. With real GPU capacity, Armenia can move from simple software to owning the full data pipeline, from ingestion to model deployment, making Armenia one of the most powerful data engineering hubs."

That's the real story here. China spent years building roads, ports, and railways to extend its influence. America is trying something different—extending influence through compute infrastructure and AI capabilities. Instead of physical highways, it's building digital ones. And unlike traditional infrastructure projects that take decades to show returns, AI factories can generate value almost immediately while creating deep technological dependencies.

Whether this becomes a replicable model for American soft power remains to be seen. But Armenia just became the first test case, and the world is watching.