Anguilla's AI Gold Rush: How a Tiny Island is Cashing In on the .ai Domain Boom

In the Caribbean, the small island of Anguilla is striking gold in an unexpected way thanks to its unique internet domain, .ai. Originally registered in the 1980s, the domain has become increasingly valuable as demand for artificial intelligence technologies skyrockets. Companies like Hubspot’s Dharmesh Shah have paid up to $700,000 for .ai addresses, igniting a surge that saw registrations increase by over 10-fold in just five years and doubling within the last year alone.

Despite its modest population of 16,000 and reliance on tourism—which accounts for 37% of its economy—Anguilla is leveraging its domain revenue to ensure long-term financial resilience against unpredictable hurricanes and tourism fluctuations. In 2024, the Anguillian government projected earnings of approximately 105.5 million Eastern Caribbean dollars ($39 million), providing nearly 23% of its total revenues. With expectations of further growth, revenues from .ai domain registrations are set to reach 132 million Eastern Caribbean dollars in 2025.

Management of this income is crucial. To adapt to potential risks like hurricanes, Anguilla has partnered with Identity Digital, which has moved domain hosting to its more secure global servers. While the registration fees for .ai domains typically range from $150 to $200, more desirable names can command auction prices in the hundreds of thousands. Such strategic financial planning aims to enhance public infrastructure, boost tourism, and improve healthcare.

In comparison, Tuvalu, another small island nation, faced challenges after signing away its domain rights in a fixed payment model. Anguilla’s approach, which shares revenues rather than securing a set amount, suggests a more sustainable model that suits their unique circumstances. As the .ai domain nears one million registrations, effective management and growth could facilitate significant advancement for Anguilla, setting a precedent for other small nations in maximizing their unique digital assets.