Introduction
The .ai domain is reshaping Anguilla’s finances, turning a ccTLD quirk into strategic revenue amid the AI boom (BBC).
At a glance: ~$39M in 2024 revenue, 850k+ .ai domains, and a revenue-sharing model to manage risk.
Context
Anguilla, a UK Overseas Territory of 16,000 people, lucked into .ai decades ago. As AI surged, .ai registrations grew 10x in five years and doubled last year. Draft budget figures show 2024 receipts of 105.5M XCD (~$39M), about 23% of revenue, while tourism is ~37% (IMF). Projections: 132M XCD in 2025 and 138M in 2026. Active .ai domains now exceed 850,000 (under 50,000 in 2020). With hurricanes threatening tourism each autumn, digital income strengthens diversification and resilience.
.ai domain: key facts
Typical registrations start at ~$150–$200, with similar two‑year renewals; premium names fetch six figures at auction.
- Record: you.ai at an estimated $700,000 (Dharmesh Shah)
- Recent sales: cloud.ai ~$600,000; law.ai ~$350,000
- Public take: government collects sales; Identity Digital’s cut is ~10% (reported)
- Hosting moved to a global network to mitigate outage and hurricane risk
"I had an idea for an AI product that would allow people to create digital versions of themselves that could do specific tasks on their behalf."
Dharmesh Shah, Co-founder, HubSpot
Model and precedents
Since Oct 2024, Identity Digital runs the registry under a five‑year deal with revenue sharing, not a fixed fee. The case echoes Tuvalu’s .tv story (initial fixed-fee deal later renegotiated), but Anguilla retains upside. UK support matters: after Hurricane Irma (2017), London provided £60M; it now welcomes growth that boosts self-sufficiency. Priorities include a new airport, public infrastructure and healthcare, funded in part by .ai proceeds.
Risks and outlook
Demand for .ai names hinges on the AI cycle. Premium pricing can cool, and .com may retain long‑term value better. Physical risks remain despite redundant hosting. Still, broad adoption, recurring renewals and enterprise interest support a constructive medium‑term view.
FAQ
Why is the .ai domain in such high demand?
It signals an AI focus instantly, helping brands and startups align with the AI market.
How much did Anguilla earn from the .ai domain in 2024?
About 105.5M XCD (~$39M), roughly 23% of revenue, according to figures cited by the BBC.
Who operates .ai registrations today?
Identity Digital, under a five‑year agreement with an estimated ~10% revenue share.
How much does a .ai domain cost?
Registrations typically start around $150–$200, with similar renewal fees every two years.
What record .ai sales have been reported?
you.ai at ~$700k; in 2024, cloud.ai ~$600k and law.ai ~$350k via auctions.
What are the main risks for Anguilla?
AI-cycle exposure and climate vulnerability; diversification helps but doesn’t remove risk.
Source: BBC.