Anguilla’s economy, a small British territory in the Caribbean, has long relied on stable flows of tourism. However, in recent years, the AI boom has created a whole new source of revenue for the island, not related to local technological innovations, but to Anguilla’s “.AI” internet space.
Countries have their own domain names – the United States has “.us”, and “.uk” belongs to the UK, but Anguilla’s internet address has become a profitable asset amid a surge in interest in AI. Companies and individuals are spending millions of dollars to secure the website with the popular “.ai” extension.
According to the International Monetary Fund (IMF) 2024 report, Anguilla charges $140 for registration and renewal of .AI domain names, with annual revenue of $87 million (US$32 million) per year. This accounts for 20% of the government’s revenue that year. By comparison, tourism accounts for about 37% of Anguilla’s GDP.
“It has grown very quickly for a long time and has become faster and faster after Chatgpt,” computer scientist Vincent Cate, who has managed Anguilla’s domain name for decades, told Observer.
According to the domain name STAT of the domain tracking website, the number of .AI domain names continues to increase, with 881,715 registrations as of this month, up from 40,600 in January 2020. To meet demand, Anguilla broke into a company specializing in domain name registration to manage its digital gold mine last year.
Anguilla is not the first country to profit from its network expansion. Tuvalu, a small island in the Pacific, has long earned revenue from its “.tv” field. Montenegro’s “.me” is a hit song on personal websites, and the federal state of Micronesia’s “.FM” state is very popular on the broadcast platform.
How is Anguilla’s new revenue stream sustainable?
At present, there is no sign of slowing growth. According to the island’s 2025 budget address for 2025, sales of domain registrations exceeded Anguilla’s expectations of more than $41 million ($15 million), totaling more than $105 million in the Eastern Caribbean ($39 million). The official program will reach 132 million Eastern Caribbean ($49 million) next year.
The money is a surprise harvest for the island, with only 16 miles and a population of less than 20,000. The proceeds from AI registration are set to fund local projects, including expanding the airport, supporting senior health care and strengthening the island’s technical career center.
This is not to say that Anguilla takes luck for granted. “It is crucial to remember that our financial plans cannot rely solely on revenue from .AI domain registration,” Anguilla’s Prime Minister Ellis Webster said in his budget address last year. “The digital landscape is constantly changing and now it seems that the source of perennials can develop rapidly tomorrow.”
Even so, a portion of the income seems to be stable. According to the International Monetary Fund, about 90% of the domains will usually be renewed in two years. Even with new registration fluctuations, this renewal rate provides Anguilla with a predictable mat. “Everyone renews their field, so you can count on some level,” Kate said. “I’m very optimistic and think the future for Anguilla is very bright.”
