The surge of artificial intelligence has created opportunities not just for developers and investors, but also for the tiny Caribbean island of Anguilla. This British territory has seen significant financial gains from the booming interest in AI technologies, particularly due to its unique control over the .ai internet domain.
Anguilla was allocated the .ai domain during the 1990s as part of a global scheme that assigned country-specific top-level domains based on their names. Although such domains typically signify a link to a country or language, companies often acquire them regardless of geographic associations. Notable examples include Google showcasing its AI services at google.ai and Elon Musk’s Grok AI chatbot utilizing x.ai. Many startups, including the AI search engine Perplexity, have also secured .ai domains, which have redirected traffic from their .com counterparts.
Last year alone, the revenue generated from domain registration fees for Anguilla skyrocketed to $32 million, a fourfold increase due to the heightened focus on AI. This amount now contributes around 20% of Anguilla’s total government revenue, a significant rise from the 5% it represented prior to the AI boom. The local government, which utilizes the gov.ai homepage, charges a renewal fee of $140 for a two-year period, a rate that won’t be adjusted according to Identity Digital’s Chief Strategy Officer, Ram Mohan. The government also receives payments for new registrations and the reselling of expired domains, with some addresses reportedly selling for tens of thousands of dollars.
This influx of funds is vital for Anguilla’s economy, which is just 35 square miles in size and home to around 16,000 residents. The island, known for its stunning beaches, coral reefs, and clear waters, attracts wealthy tourists. However, many locals face economic challenges, especially in the wake of the COVID-19 pandemic and previous destructive hurricanes.
Despite the promising financial developments, Anguilla still lacks its own established AI industry. Premier Ellis Webster expresses hope that the island will eventually become a technological hub. He noted that it was merely by chance that Anguilla received the .ai domain in 1995, as both Anguilla and neighboring Antigua contain those letters in their names.
Webster acknowledged the financial relief brought by the domain earnings but emphasized the importance of diversifying the economy. He stated, “You can’t predict how long this is going to last,” highlighting the risks of over-reliance on these newfound revenues. He expressed concerns that an unexpected shift in trends could lead to significant cuts in government programs and funding.
In response to the rapid spike in domain registrations, Anguilla has announced a partnership with Identity Digital, a domain management firm based in the U.S. This agreement aims to bolster the management of domain services while increasing revenue and enhancing the security of these web domains. Identity Digital is expected to migrate all .ai domain services to its systems by early next year.
Historically, a local software entrepreneur helped establish Anguilla’s registry system years ago, and the current domain count has soared past 533,000—more than a tenfold increase since 2018. A report from the International Monetary Fund projected that the earnings would assist in diversifying the economy, making it more resilient against external disruptions.
Webster anticipates that revenue from domain-related activities could double this year, using these funds to finance significant projects, including the expansion of the airport, provision of free healthcare for seniors, and completion of a vocational training center. These earnings also supply necessary budget support for various development initiatives aimed at fortifying the island against future hurricanes, which currently relies on assistance from Britain under certain conditions.
Mohan also highlighted the partnership with Identity Digital as a means of safeguarding Anguilla against cyber threats. He pointed to the example of Tokelau, whose .tk addresses became infamous for spam and phishing scams after its registry services were outsourced. Mohan voiced concern about malicious entities taking advantage of the AI domain hype and explained that the new technology will swiftly eliminate fraudulent sites.
Additionally, the partnership will improve the accessibility of .ai websites by eliminating the reliance on a single internet cable connecting the island to the digital infrastructure. This will mitigate the risks of bottlenecks and physical disruptions, allowing websites to leverage global servers, resulting in significantly faster access times—from milliseconds to microseconds.