Armenian market attracts new companies in artificial intelligence - Deputy Minister

Armenia’s artificial intelligence sector is attracting growing interest from both domestic and foreign companies, following plans to create a large AI data processing center in the country, First Deputy Minister of High-Tech Industry Gevorg Mantashyan told Armenpress.

“The creation of such a center has encouraged new players, including those from outside Armenia, to consider similar projects here. This makes their ambitions more realistic and raises investment stakes,” Mantashyan said.

He noted that while negotiations with new companies are ongoing, the government is exploring ways to provide a favorable environment for potential investors. Mantashyan did not disclose the names of the companies involved, citing ongoing discussions.

The Deputy Minister also described the U.S. government’s recent decision to provide Nvidia-manufactured chips to AI startup Firebird Inc., for the creation of the Armenian data center, as a “significant event.” "This was facilitated by the Washington Memorandum signed by the U.S. President and the Armenian Prime Minister on August 8," he said.

The Deputy Minister noted that the data center, scheduled to launch in 2026, will be fully funded through private investments. “The government does not plan to invest or hold a share. Its role will be that of a facilitator,” Mantashyan explained.

When asked about the expected investment volume in this center to be built, the deputy minister elaborated: "The $500 million will be invested in the US economy, not ours, because we don't produce those chips, Nvidia does. The $500 million is the value of those chips. Those chips belong to Nvidia. That is the US economy."

Regarding Armenia’s position on the global IT map, Mantashyan said that while the country’s role is modest in some areas, it leads in some areas within the Middle East, Central Asia and Eastern Europe. “For example, we are leaders in certain modern directions of semiconductor design,'' he said,  expressing hope that Armenia will be able to use advantages in the best way.