The population of Anguilla totals at less than 20,000. From Agostini via Getty Images
The economy of Anguilla, a small British territory in the Caribbean, has long relied on a steady flow of tourism. In recent years, however, the A.I. boom has created an entirely new source of revenue for the island—one tied not to local tech innovation, but to Anguilla’s “.ai” internet domain.
It’s common for countries to have their own domain name—the U.S. has “.us,” while “.uk” belongs to the U.K. But amid the surge of interest in A.I., Anguilla’s internet address has become a lucrative asset. Companies and individuals are spending millions to secure websites with the sought-after “.ai” extension.
In 2023, Anguilla—which charges $140 for .ai domain registrations and renewals—generated 87 million East Caribbean dollars ($32 million) in annual revenue from .ai domain names, according to a 2024 report from the International Monetary Fund (IMF). This accounted for 20 percent of the government’s revenue from the year. By comparison, tourism makes up around 37 percent of Anguilla’s GDP.
“It had been growing fast for a very long time, and it grew extra fast after ChatGPT,” Vincent Cate, a computer scientist who managed Anguilla’s domain name for decades, told Observer.
The number of .ai domain names continues to rise, with 881,715 registered as of this month compared to 40,600 in January 2020, according to Domain Name Stat, a domain-tracking website. To keep up with demand, Anguilla last year tapped Identity Digital, a firm specializing in domain registrations, to manage its digital goldmine.
Anguilla isn’t the first nation to profit from its web extension. Tuvalu, an island in the Pacific Ocean, has long earned revenue from its “.tv” domain. Montenegro’s “.me” is a hit for personal websites, and the Federated States of Micronesia’s “.fm” is popular with radio platforms.
How sustainable is Anguilla’s new revenue stream?
For now, growth shows no signs of slowing. Sales from domain name registrations in 2024 exceeded Anguilla’s expectations by more than 41 million East Caribbean dollars ($15 million), totaling over 105 million East Caribbean dollars ($39 million), according to the island’s 2025 budget address. Officials project that figure will reach 132 million East Caribbean dollars ($49 million) next year.
The money is a windfall for the island, which is only 16 miles long with a population under 20,000. Proceeds from .ai registrations are set to fund local projects, including expanding the airport, supporting elder health care and strengthening the island’s technology vocational center.
That isn’t to say that Anguilla is taking its luck for granted. “It is crucial to remember that our financial planning cannot solely rely on the revenues from the .ai domain name registrations,” said Ellis Webster, Anguilla’s premier, during last year’s budget address. “The digital landscape is ever-changing, and what seems like a perennial source today can rapidly evolve tomorrow.”
Even so, part of the revenue appears stable. Roughly 90 percent of domains are typically renewed after two years, according to the IMF. That renewal rate offers Anguilla a predictable cushion even as new registrations fluctuate. “Everybody renews their domains, and so there’s sort of a certain level you can just count on,” said Cate. “I’m very optimistic that the future for Anguilla is very bright.”
