The Trump administration employed access to advanced AI chips from the U.S. company Nvidia as a diplomatic tool to help broker peace between nations, according to a report by The Wall Street Journal. U.S. negotiators reportedly used the prospect of obtaining Nvidia's cutting-edge AI hardware to persuade Armenia to advance a peace agreement with neighboring Azerbaijan.
The two countries had a long-standing conflict over the disputed territory of Nagorno-Karabakh, which had previously erupted into war multiple times. A U.S.-brokered peace agreement was initialed by their leaders in August, following White House intervention. "Chip diplomacy" played a significant role in these efforts.
The U.S. leveraged the potential provision of 70,000 Nvidia AI processors for a proposed $5 billion Armenian data center, codenamed Firebird, as part of its diplomatic initiatives. AI processor technology has become increasingly valuable as nations strive to enhance their AI computing infrastructure, providing the U.S. with considerable leverage on the global stage.
"For this administration, chip diplomacy is front and center," stated Rev Lebaredian, a senior Nvidia executive of Armenian descent, to The Wall Street Journal. "Our presence in Armenia and our investment in it is a big factor in creating the conditions by which peace can unfold."
Armenian Prime Minister Nikol Pashinyan has credited President Trump's "chip diplomacy" for helping to end the war with Azerbaijan and foster deeper economic ties with the U.S. During a visit to Armenia in February, Vice President JD Vance remarked that the deal would create "new markets for American workers and for American businesses, but it also means greater prosperity for the people of Armenia."
The U.S. has also reportedly used AI hardware as an incentive in negotiations with the United Arab Emirates and Saudi Arabia. These agreements have become part of Trump's developing relationship with Jensen Huang, Nvidia's CEO, who advises the President on artificial intelligence. Huang described the data center as the beginning of efforts to "connect this region to the global AI economy" in a video message at its opening.
Separately, U.S. Middle East envoy Steve Witkoff has proposed a rail, pipeline, and road project connecting Azerbaijan to its exclave of Nakhchivan, named the Trump Route for International Peace and Prosperity, with construction slated to begin next year.
President Trump has frequently stated that he ended multiple wars during his second term. He claimed to have resolved at least ten wars, including a mid-August ceasefire between Israel and Lebanon. Trump asserted on Truth Social at the time, "It has been my honor to solve nine wars across the world, and this will be my tenth, so let's GET IT DONE!"
Regarding the conflict with Iran, Trump maintained that it is not a war, but a "military conflict" that he characterized as "small potatoes." According to Department of Defense data, at least 18 U.S. service members have died in the conflict with Iran since it began in February 2026, with at least 767 injured.
