Preface
Considering the key highlights during 2025, the most important development in Armenia’s tech ecosystem was the launch of Firebird AI – a $500M initiative to build an AI factory in Armenia and provide large-scale AI infrastructure for the region’s tech ecosystem.
The Firebird initiative, enabled by U.S. approval to export NVIDIA AI chips to Armenia, highlights the growing strength of the Armenian ecosystem.
At the same time, investment activity was noticeably lower compared to previous years. Fewer deals were announced, and total disclosed capital declined.
With that context in mind, let’s take a closer look at what actually happened in Armenia’s tech ecosystem in 2025.
Major Developments
- Braze acquired OfferFit, co-founded by George Khachatryan, in a $325M exit, marking one of the largest Armenian-linked exits to date (https://t.me/threenstartups/946).
- Plug and Play made its first Armenian startup investment, backing Prodmap AI, following its first Armenian accelerator batch (https://t.me/threenstartups/965).
- Plug and Play and the Ministry of HTI announced a launch of a 3-year incubation, pre-acceleration and acceleration program to continue a structured approach for startups development in the country (https://t.me/threenstartups/1009).
- The Formula VC II Fund officially launched, expanding early-stage capital availability in Armenia (https://t.me/threenstartups/909).
- Armenia climbed to #54 globally in the StartupBlink Global Startup Ecosystem Index 2025, with 22.8% annual ecosystem growth and #1 ranking in Central Asia and ranks among the top 40 globally in Software & Data. Yerevan jumped 19 positions in global startup city rankings, reaching 181st globally (https://t.me/threenstartups/975).
- A $500M public–private AI infrastructure partnership was announced between Firebird and the Armenian government (https://t.me/threenstartups/994), supported by NVIDIA, with the US approving the export of NVIDIA AI chips, enabling the Firebird AI project to move forward (https://t.me/threenstartups/1104)
- Starlink officially launched in Armenia, strengthening the national digital infrastructure (https://t.me/threenstartups/945).
- Armenia hosted major ecosystem events, such as the 20th jubilee DigiTec Expo (https://t.me/threenstartups/1077), Investor Tour 2025 (https://2022.itel.am/en/news/16487) and the Gateway to EU Congress (https://t.me/threenstartups/1064) and many more events.
- TUMO continued its global expansion, opening TUMO Gunma, Japan (https://t.me/threenstartups/989), announcing TUMO Astana (https://t.me/threenstartups/966), and expanding into many other locations.
- Armenia’s Tech & Startup Ecosystem Overview 2025 reported 1,253 active tech companies, 58,700 tech professionals, $2.3B industry turnover, and 7% GDP contribution from ICT, according to Armenia’s Tech & Startup Ecosystem Overview 2025, published by Armenian Code Academy, STEP Consulting LLC, and the Technological Education Foundation (https://t.me/threenstartups/938).
News in Detail
The Biggest Success
Firebird, a San Francisco and Yerevan-based AI cloud company, announced a $500 million public-private partnership with the Armenian government, backed by U.S. tech giant NVIDIA, to build a major AI infrastructure hub in Armenia. The initiative aims to launch the first large-scale AI supercomputer in the South Caucasus by 2026, powered by thousands of NVIDIA Blackwell graphics processing units (GPUs) and scalable beyond 100 megawatts.
Investment Announcements
1) BANA Angels & Formula VC → Prodmap AI
2) STAN & Triple S Ventures → My Town AI
3) STAN → Stealth Startup (undisclosed)
4) Alchemist Doha → Denovo Sciences
5) Plug & Play → Prodmap AI
6) STAN → SimCare AI
7) Dell Technologies Capital → SuperAnnotate ($13.5M; making the total of SuperAnnotate’s Series B round $50M)
8)eqwefy → invested a total of $240K in rBlox, TACTUN, Exorde. As it was showcased in last year’s recap eqwefy launched its operations at the end of 2024, and during 2025, the platform listed six startups enabling investors to get started with as low as 10K AMD (~25$)
9) Granatus Ventures → Vivalyx
10) STAN → TACTUN
11) SmartGate VC → Coherence Neuro ($10M seed round, alongside Topology Ventures and Artesian)
12) Granatus Ventures → Quiltt ( $2.6M seed round)
13) SmartGate VC → Cordance Medical ($8M seed round)
14) Granatus Ventures → Emerald Health
15) BANA Angels → CaseLens
16) AICA → Kartes Analytica
17) AICA → BeeSync
18) Granatus Ventures → Zoundream (€4 million seed round)
Exit:
Braze acquired OfferFit — co-founded by George Khachatryan — for $325 M.
Note from 3N
The overall number of investment deals this year was significantly less than we saw in previous years.
Notable Developments
Plug & Play Global Accelerator: The Plug & Play Global Accelerator launched in Armenia in 2024. During 2025, the program showcased its first Armenian startup batch and made its first local investment in Prodmap AI. In addition, the Government of Armenia approved $4 million in funding to strengthen the country’s startup ecosystem through a three-year partnership with Plug & Play Tech Center. This long-term collaboration aims to ensure the stable growth and development of Armenia’s startup ecosystem. Over the next three years, Plug & Play will establish a permanent branch in Armenia, running incubation, pre-acceleration, and acceleration programs, and helping local innovators compete on a global stage.
- Launch of Formula VC II Fund: Formula VC officially launched its second fund, marking a significant milestone for the Armenian startup ecosystem. Building on the foundation of Formula VC I, launched in 2021, the firm has backed 22 startups, many of which have grown into global players in cybersecurity, AI, and quantum technologies. With investors and advisors from more than 20 countries, Formula VC has established itself as a key enabler of Armenia’s startup ecosystem. The new fund plans to invest $30 million across 35–40 startups, supporting emerging founders and helping Armenia’s tech ecosystem grow further on the global stage.
- Starlink in Armenia: Starlink officially launched in Armenia in March 2025, bringing high-speed satellite internet coverage across the country, including remote and hard-to-reach areas. The rollout marked a major boost to Armenia’s digital infrastructure, offering more secure connectivity and a strategic backup to traditional internet networks. Announced by Armenia’s Minister of High-Tech Industry alongside Elon Musk, the launch made Armenia the 130th country with access to Starlink, enabling reliable connectivity and remote work from virtually anywhere.
- Armenia has officially approved a pilot state support program to expand access to high-performance computing resources for AI innovators, which was supported in partnership with Amazon Web Services (AWS).
- Armenia’s Tech & Startup Ecosystem Overview 2025: Published by Armenian Code Academy, STEP Consulting LLC, and the Technological Education Foundation, as of 2025, Armenia is home to 1,253 active tech companies and 58,700 professionals working in the tech sector.
- TUMO expansion: In 2025, TUMO continued its global expansion. In South America, Argentina welcomed TUMO’s very first center on the continent at the Centro Metropolitano de Diseño in June. Central Asia joined the network for the first time with the TUMO Center for Creative Technologies opening in Astana, Kazakhstan, inside alem.ai in October, providing teens aged 12–18 with in-demand digital skills and supporting Kazakhstan’s goal to upskill 1 million people in digital literacy. In Asia, TUMO Gunma officially opened in Takasaki, Japan, marking the organization’s first presence on the continent, with additional TUMO Boxes planned for Maebashi and Kusatsu to further expand access across the region.
- Gateway to EU Congress: In Fall 2025, Armenia hosted the Gateway to EU Congress, a major investment summit to connect Armenian startups with European investors, create cross-border tech collaboration, and support Armenia’s EU integration efforts. The event brought together 200 participants, including 40 international guests and 160+ local ecosystem players. It was co-hosted by Armenian angel networks — AICA, BANA Angels, and STAN — in partnership with the European Business Angel Network (EBAN), and supported by the EU4Innovation East project and the Ministry of Economy of Armenia.
- DigiTec 2025: This year marked the 20th edition of DigiTec, Armenia’s flagship tech expo, and it didn’t disappoint. Spanning 15,000 m², the event brought together over 300 companies and 100+ speakers from Armenia and around the world. More than 40,000 visitors came to explore innovations, meet startups, and connect with industry leaders. Two decades in, DigiTec continues to be the place where Armenia’s tech community celebrates achievements, sparks new collaborations, and inspires the next generation of innovators.
- Silicon Mountains 2025 – “Anatomy of AI”: Silicon Mountains returned in 2025 with a focus on artificial intelligence. The summit brought together over 10 experts and industry leaders to discuss AI’s foundations and complexities, covering topics from algorithms and neural networks to data pipelines and human expertise. The event provided insights into how AI systems work and their applications across industries.
International Media Coverage on the Armenian Startup Ecosystem
BBC Business Daily | Armenia: Silicon Valley of the Caucasus?
Rayhan Demytrie from BBC Business Daily explored Armenia’s push to become a global tech hub. The episode showcased how initiatives like Armath Labs, where 11-year-olds build smart homes, foster the next generation of innovators. They also met startups like Doctor Yan, Armenia’s first doctor-patient matchmaking platform. With 600+ Armath Labs serving 17,000 students and producing 9,000 alumni, and a startup ecosystem strengthened by diaspora connections, Armenia is steadily building the talent and infrastructure to compete on the global stage.
The episode underscored how Armenia is being recognized internationally for its homegrown innovation and education-driven approach to building a tech ecosystem.
🎙️ The full episode on BBC Business Daily: https://t.me/threenstartups/955
Forbes | Armenia Gets A Data Center With Nvidia Chips
Forbes highlighted Armenia’s expanding role in tech and innovation, spotlighting diaspora-led initiatives such as Firebird.AI’s $500 million Nvidia-powered data center. The coverage emphasized how Armenian entrepreneurs are merging business, technology, and statecraft to drive economic development, while also navigating regional risks. Global tech players like Picsart and events like Digitec, which drew tens of thousands of participants to Yerevan, illustrate Armenia’s increasing integration into international innovation networks. This showed that Armenia is no longer just a local tech player but a country capable of hosting major international-scale projects and investments.
New Eastern Europe | Armenia’s AI leap: how open access and strategic alliances could supercharge a small country’s high-tech future
Forbes highlighted Armenia’s surprising rise in artificial intelligence, showing how a small nation of three million is leveraging education, strategic partnerships, and open-access AI technologies to compete globally. By democratizing AI through initiatives like DeepSeek and partnering with companies such as Mistral AI, Armenia is nurturing talent and incubating startups, turning its geographic isolation into an advantage. The country’s diaspora plays a key role, connecting local innovators to global markets and capital. With programs like Generation AI reaching high school students nationwide, Starlink improving digital infrastructure, and multinational tech giants establishing local operations, Armenia is steadily positioning itself as a regional hub for AI and tech.
This coverage highlighted Armenia’s growing reputation as a forward-looking player in the global AI landscape, proving that even smaller countries can shape the future of high-tech innovation.
