How this tiny island is making millions thanks to AI
What's the story
The Caribbean island of Anguilla, a British Overseas Territory, has been reaping the benefits of its unique internet domain extension. The island was assigned the ".ai" domain in the 1980s when countries were given their own website addresses. With the rise of artificial intelligence (AI), this domain has become a hot commodity, raking in millions for Anguilla.
Economic diversification
Surge in '.ai' websites
The number of .ai websites has skyrocketed, increasing more than tenfold in five years. This surge has helped Anguilla diversify its economy, which is heavily dependent on tourism. In 2024, the island earned 105.5 million East Caribbean dollars (approximately $39 million) from selling domain names, accounting for nearly a quarter of its total revenue.
Economic outlook
IMF praises Anguilla's efforts
The International Monetary Fund (IMF) has praised Anguilla's efforts to diversify its economy through domain name sales. The island's government expects .ai revenues to rise further in the coming years, with projections of 132 million Eastern Caribbean dollars in 2025 and 138 million in 2026. This new income stream is crucial for making Anguilla's economy more resilient to natural disasters like hurricanes, which often disrupt its tourism sector.
Infrastructure improvements
Deal with US tech firm
To manage its growing domain name income, Anguilla signed a five-year deal with US tech firm Identity Digital in October 2024. The company moved all .ai domains to its global server network to prevent disruptions from hurricanes or other infrastructure risks. Despite not disclosing exact costs, registration prices for .ai addresses start at around $150-$200, with similar renewal fees every two years.
Future plans
Future investments for Anguillians
Anguilla's government receives sales revenue from .ai domains, with Identity Digital taking a 10% cut. The island hopes to use this income for infrastructure improvements and healthcare access. As the number of registered .ai domains approaches one million, Anguillians are optimistic about their future investments.