How a Tiny Caribbean Island Cashed in on the AI Boom—Thanks to Sheer Digital Luck
In the early days of the internet, countries and territories were quietly assigned their own web domains—like .us for the United States or .uk for the United Kingdom. For the small Caribbean island of Anguilla, that domain was .ai.
At the time, no one on the island could have predicted that those two letters—purely coincidental—would become some of the most coveted in the tech world, thanks to the explosive growth of artificial intelligence (AI).
Fast-forward to today, and the island of just 16,000 people is earning tens of millions of dollars a year from companies desperate to get their hands on a .ai domain.
From Tropical Island to Tech Goldmine
Anguilla, a British Overseas Territory known for its stunning beaches and luxury resorts, has long relied on tourism as the backbone of its economy. But its geography also makes it vulnerable to hurricanes, like the devastating Hurricane Irma in 2017, which prompted a £60 million UK aid package to help with recovery.
Now, thanks to the popularity of .ai domain names, Anguilla has found a new, more resilient stream of income—pure digital gold.
In 2024 alone, the government earned 105.5 million Eastern Caribbean dollars (around $39 million USD) from domain sales, making up nearly a quarter of its total revenue. By comparison, tourism accounted for 37% of government income, according to the International Monetary Fund (IMF).
Projections for 2025 estimate domain revenues will rise even further to 132 million Eastern Caribbean dollars, and reach 138 million by 2026, as demand continues to skyrocket.
Big Buyers, Big Bucks
Tech leaders and AI entrepreneurs are snapping up .ai domains, often at jaw-dropping prices. One standout is Dharmesh Shah, co-founder of HubSpot, who reportedly paid $700,000 for you.ai.
Shah told the BBC that he envisioned using the domain for an AI platform that allows people to create digital assistants to complete tasks on their behalf. While he hasn’t launched the project yet, he sees value in collecting promising domain names—and occasionally sells them to other entrepreneurs.
“I still think, over the long-term, .com domains will maintain their value better and for longer,” he says. But in the short-term, .ai domains are undeniably hot.
Recent domain sales include:
- cloud.ai – $600,000
- law.ai – $350,000
Registration fees for .ai domains typically start around $150–$200, with similar renewal fees every two years. More desirable names are auctioned off, sometimes fetching six figures or more.
A Smarter Business Model
Unlike other small nations that licensed their domain rights in fixed contracts, Anguilla has chosen a revenue-sharing model. In October 2024, the government signed a five-year deal with Identity Digital, a US-based domain registrar. While the exact terms aren’t public, it’s believed Anguilla receives around 90% of the domain revenue.
Identity Digital has also moved the hosting of all .ai domains to its global server network to reduce risks from hurricanes and infrastructure issues on the island.
This flexible approach allows Anguilla to directly benefit from the growing demand and continue adapting its strategy in real time.
Not the First Digital Windfall
Anguilla’s story echoes that of Tuvalu, a Pacific island nation that holds the .tv domain. In 1998, Tuvalu signed an exclusive licensing deal with US firm VeriSign, initially earning $2 million a year, later increased to $5 million. But Tuvalu later claimed the deal severely undervalued the domain and renegotiated with GoDaddy in 2021.
Anguilla has avoided that pitfall by keeping tighter control of its domain and leveraging its popularity for maximum financial benefit.
Building a Future with Digital Wealth
With nearly 850,000 .ai domains registered—up from under 50,000 just five years ago—Anguilla’s unexpected tech fortune shows no signs of slowing. Officials hope the revenue can fund major infrastructure projects, including a new airport, better healthcare, and public service improvements.
The UK Foreign Office has praised Anguilla’s innovative approach, calling it an important step toward economic self-sufficiency.
And while hurricanes may still batter the island’s shores, it’s clear that Anguilla’s digital future is looking bright—thanks to a domain name born of sheer luck, and a government smart enough to capitalize on it.
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