Tiny island owns '.ai', now tech firms are paying millions of dollars

Anguilla’s striking digital gold.

In 2024, this tiny Caribbean gem pocketed a cool 105.5 million East Caribbean dollars ($39 million) just from selling ".ai" domain names.

That’s a whopping 23% of their budget, as per the International Monetary Fund (IMF).

AI’s the hottest thing since sliced bread, and Anguilla’s cashing in big time.

IMF notes that the Caribbean island is receiving a fiscal boost from internet domain registrations — and offers lessons for others.

The Fund stated: Anguilla's .ai country-code internet domain "has become a favourite among technology companies" across the world.

Since the launch of ChatGPT in November 2022, registrations of .ai domain names have skyrocketed — surging from 144,000 registrations in 2022 to 354,000 in 2023.

"In 2023 alone, this surge in .ai domain registrations generated EC$87 million in revenue (approximately $32 million) — just over 20% of the government's total revenue for the year," the IMF reported. "This marks a dramatic increase from previous years, when revenue from .ai domain registrations hovered around 5%."

How did they pull off this epic win? And can they keep the party going?

Way back in the ‘80s, when the internet was just a nerdy toddler, every country got its own web suffix.

Think .gov for bigwigs, .edu for brainiacs, .in for India, and .ae for the United Arab Emirates.

Anguilla, a chill Caribbean island with only 16,000 folks, snagged .ai.

Total accident, but it’s like hitting the jackpot at a beachside club.

Now, with AI blowing up, everyone’s begging Anguilla for .ai domains.

Tech guru Dharmesh Shah shelled out $700,000 for you.ai to build a rad AI project for digital clones.

Talk about a flex.

The .ai game is exploding — 850,000 domains now, up from 50,000 in 2020.

That’s a 10x spike in five years, doubling in 2024 alone.

Anguilla’s all about tourism, with 111,639 fancy travellers (mostly Americans) hitting their beaches in 2024 — a record.

But hurricanes crash the party every fall, smashing the island’s vibe (Hurricane Irma in 2017 was a doozy).

So, .ai cash is their superhero, diversifying the economy and keeping the lights on when storms hit.

The IMF’s giving them props for this smart move: The government’s betting on even more revenue — 132 million XCD ($48.8 million) in 2025, 138 million XCD ($51 million) in 2026.

To keep things smooth, they teamed up with Identity Digital, a US tech crew, in October 2024.

These guys moved .ai hosting to global servers, safe from hurricanes or power outages.

Regular .ai domains cost $150-$200, with renewals every two years. But the hot ones? They’re auctioned off — cloud.ai went for $600,000, law.ai for $350,000.

Anguilla keeps most of the cash, with Identity Digital snagging about 10%.

As a British Overseas Territory, Anguilla’s got the UK watching their back for defence and emergencies (like the £60m bailout post-Irma).

The UK’s cheering their .ai hustle, saying it’s a step toward financial freedom.

The big challenge? Turning this digital treasure into long-term wins. Anguilla’s dreaming of a new airport, better healthcare, and tougher infrastructure. They’re not like Tuvalu, who got a measly $5 million a year for .tv domains.

Anguilla’s revenue-sharing deal is way smarter. With ".ai" domains racing toward a million, locals hope the cash keeps flowing and funds a future as bright as their beaches.

Going forward, the government expects revenue from .ai domain registrations to stabilise at around 15% of total government revenue, as the initial rush of registrations gradually slows, the IMF noted.