Anguilla’s Economic Growth Fueled by AI Domain Boom
Since the launch of ChatGPT in late 2022, AI has significantly impacted the tech industry. A surprising beneficiary of this development is Anguilla, a small Caribbean island. Introduced in 1995 as a country code, the .ai domain has become a sought-after digital asset for AI companies worldwide. Data from Domaintechnik shows that an average of 1,518 new .ai domains are registered daily, with projections suggesting the million mark could be reached by November.
The demand for .ai domains continues to rise. According to Identity Digital, 28% of newly founded tech startups now use a .ai domain. Companies like perplexity.ai, x.ai, meta.ai, and google.ai use this extension to emphasize their connection to artificial intelligence. Since 2018, .ai registrations have increased twentyfold, and these domains fetch high prices in the secondary market, with you.ai selling for $700,000 in 2023 and cloud.ai for $600,000 in 2025.
This boom has transformed Anguilla's economy. Jose Vanterpool, Minister of Infrastructure and Communication, explains that before AI's breakthrough, .ai domain revenues accounted for less than 1% of state income. By 2023, they rose to 25-27%, and by 2025, they are expected to reach around 47%. The island's economy, previously reliant on tourism, now benefits from a stable and growing revenue source through .ai domains.
Fabian Ledl from Domaintechnik highlights the ongoing success, noting that .ai domains have a renewal rate of around 90% despite their relatively high cost. Registered for at least two years in advance, the first major renewal wave of domains registered in 2023 is expected in 2025, contributing to a surge in state revenue. These domains cost €149.99, significantly more than common extensions like .com or .de.
The International Monetary Fund reports that Anguilla strategically uses .ai domain revenues, allocating part to debt repayment and investing in future projects such as airport expansion, green energy, and conservation of nature and fish stocks. The government aims for a sustainable economic future beyond tourism.
Despite the financial windfall, Prime Minister Ellis Webster advises caution, stating, "It's unpredictable how long this will last. Our economy and programs should not rely solely on this. Otherwise, we may face drastic cuts if a new trend emerges." This caution appears warranted, as Anguilla's unexpected wealth stems from a fortunate coincidence. As Webster notes, the .ai domain could have easily been assigned to neighboring Antigua.