Tiny Caribbean Island Anguilla Banks Big with .AI Domain Revenue

The Government of Anguilla reported that revenue from its “.ai” internet domain surged to $39 million in 2024, accounting for nearly a quarter of the British overseas territory’s budget.

Official government data confirm that these earnings stem entirely from domain registrations linked to artificial intelligence companies worldwide.

Anguilla, a Caribbean island with about 16,000 residents, received the .ai domain in the early years of the internet. At the time, artificial intelligence was a niche research field with little commercial value.

The territory’s choice to retain ownership and pursue a revenue-sharing arrangement with Identity Digital, a US domain registrar, turned the once obscure code into a central pillar of its economy.

The financial model relies on a 90 percent share of domain sales and renewals flowing directly to Anguilla’s treasury. Basic domain names cost around $150, while highly sought-after addresses go to auction.

Recorded sales include you.ai for $700,000, cloud.ai for $600,000, and law.ai for $350,000. Each domain must be renewed every two years, ensuring steady recurring income.

Growth has been rapid. Government figures show fewer than 50,000 .ai websites in 2020. That number exceeded 850,000 by mid-2024, reflecting surging global demand for AI-related branding.

In 2023, revenue stood at $32 million, making up over 20 percent of the national budget. The 2024 figure represented an increase of more than 20 percent year on year. Finance officials now project $48.8 million in 2025, equal to about $3,000 per resident.

The government views this digital windfall as a buffer against the island’s reliance on tourism, which represented 37 percent of gross domestic product last year. Official visitor data show 111,639 arrivals in 2023.

Hurricanes such as Irma in 2017 exposed the risks of depending too heavily on the sector. By contrast, domain revenues are stable, geographically diversified, and less vulnerable to climate events.

Authorities announced plans to channel funds into public infrastructure, airport expansion, and health services. Finance Ministry statements indicate the intent is to strengthen resilience and diversify income beyond tourism.

Officials estimate that domain sales will stabilize between 15 and 25 percent of total government income in the medium term. The experience mirrors, but also differs from, Tuvalu’s earlier licensing of its .tv domain.

Tuvalu initially agreed to fixed-fee contracts that later proved less favorable, while Anguilla structured a revenue-sharing approach from the start. This has allowed it to capture growing value from AI-driven demand without tying its future to a single provider.

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