Tiny Caribbean Island Profits from AI Domain Name
In the early days of the internet, countries were assigned their own unique website addresses, including the Caribbean island of Anguilla, which received the .ai domain. Unbeknownst to the island at that time, this seemingly innocuous decision would turn into a lucrative opportunity.
With the recent boom in artificial intelligence (AI), the demand for the .ai domain has surged, as more companies and individuals seek to register websites featuring this tag. Among those taking advantage of this are tech leaders like Dharmesh Shah, who reportedly spent $700,000 on the domain you.ai to develop an AI product enabling users to create digital versions of themselves.
According to data on domain registration, the number of .ai websites has more than doubled in the last year, swelling from fewer than 50,000 in 2020 to over 850,000 today. For Anguilla, which has a population of only 16,000, capitalizing on this unexpected windfall presents a vital economic opportunity amidst the challenges it faces.
Diversifying the Economy
Traditionally, Anguilla’s economy has relied heavily on tourism, particularly in the luxury travel sector, which has seen record visitor numbers in recent years. However, the island’s tourism industry is highly susceptible to seasonal hurricanes. To ensure long-term financial stability and resilience, Anguilla is keen to develop a sustainable income stream from its domain revenues.
Data from the island’s statistics department revealed that in 2024, Anguilla earned approximately 105.5 million East Caribbean dollars ($39 million) from selling domain names, accounting for nearly a quarter of its total revenue. Projections indicate this revenue could rise to 132 million in 2025 and 138 million in 2026.
Management and Infrastructure
As a British Overseas Territory, Anguilla enjoys a high degree of self-governance while remaining under UK sovereignty. The UK has previously supported Anguilla, providing financial assistance following Hurricane Irma’s devastating impact in 2017.
To manage its changing revenue landscape, Anguilla signed a five-year deal with Identity Digital, a US tech firm specializing in domain name registration. In early 2025, Identity Digital transitioned the hosting of .ai domains from Anguilla to its global server network, safeguarding the infrastructure from hurricane-related damages.
While the exact costs for .ai addresses are not publicly available, they reportedly start at around $150 to $200, with similar renewal fees every two years. Notably, high-demand domain names can earn tremendous sums at auction, with recent sales fetching prices in the hundreds of thousands of dollars. Anguilla’s government retains the profits from these sales, potentially enhancing its economic capabilities.
Future Goals and Comparisons
Anguilla aims to use the revenue generated from domain registrations to improve infrastructure, enhance healthcare access, and possibly fund the construction of a new airport to accommodate tourism growth. Comparisons can be drawn to Tuvalu, another small island nation, which capitalized on its .tv domain but faced challenges regarding the compensation it received for its rights.
Unlike Tuvalu’s fixed payment contracts, Anguilla is leveraging a revenue-sharing model to secure a steady stream of income from its .ai domain. As the trend for registered .ai domains approaches one million, the island hopes to manage these profits efficiently to invest in its citizens’ futures.