Anguilla, a British Overseas Territory in the Caribbean, is unexpectedly reaping millions of dollars from its .ai internet domain, thanks to the global artificial intelligence boom. This financial windfall, stemming from a domain assignment made in the 1980s, is now diversifying the island’s economy and funding key infrastructure projects.
Back in the 1980s, when the internet was in its infancy, countries were assigned unique website addresses based on their names, and Anguilla received the .ai domain. At the time, this seemed like a minor administrative detail, but with the explosive growth of artificial intelligence in recent years, .ai has become highly sought after by tech companies and entrepreneurs. The number of .ai domain registrations has surged more than 10-fold in the past five years, doubling in the last 12 months alone, driven by the AI frenzy sparked by innovations like ChatGPT.
In 2024, Anguilla earned approximately $39 million from .ai domain sales, accounting for nearly a quarter of its total government revenue. This marks a significant increase from previous years; for instance, in 2017, domain sales brought in only $1 million. The island’s economy, which traditionally relies heavily on tourism—contributing about 37% of GDP—is now benefiting from this digital windfall, making it more resilient to external shocks like hurricanes that frequently threaten the region.
To manage the booming domain business, Anguilla signed a five-year deal in October 2024 with Identity Digital, a U.S.-based tech firm specializing in domain registries. This partnership includes moving the hosting of .ai domains from local servers in Anguilla to a global network, ensuring stability against infrastructure risks such as power outages or natural disasters. The government expects revenues to rise further, projecting $132 million East Caribbean dollars this year and $138 million in 2026.
Domain registration fees start around $150-$200 for two years, with renewals at similar rates, but premium domains can auction for much higher sums. For example, Dharmesh Shah, co-founder of HubSpot, spent $700,000 on the domain you.ai earlier this year, and recent auctions have seen sales like cloud.ai for $600,000. Anguilla receives the bulk of these revenues, with Identity Digital taking a cut estimated at around 10%.
This situation parallels other small territories benefiting from their domain codes, such as Tuvalu with .tv, but Anguilla’s revenue-sharing model is distinct from fixed payments. The influx of funds is already being used to pay down debt, eliminate property taxes, and invest in projects like airport development and healthcare improvements, aiming for long-term sustainability.
Looking ahead, as .ai domains approach the million mark, Anguilla faces the challenge of harnessing this luck into a stable income source. The government is cautious not to over-rely on it, but the domain boom offers a rare opportunity to bolster economic resilience and fund transformative infrastructure in a nation of just 16,000 people.