Anguilla, a British Overseas Territory in the Caribbean, is experiencing an unexpected windfall thanks to the artificial intelligence (AI) boom. Assigned the .ai top-level domain in 1988 by the Internet Corporation for Assigned Names and Numbers (ICANN), Anguilla is now capitalizing on its coincidental alignment with the abbreviation for artificial intelligence. This fortunate domain extension is attracting both big and small tech companies eager to establish their presence online with an AI-related domain name. As a result, domain registrations and investments have become a significant revenue source for Anguilla, contributing to a third of the island’s income.
The island, known for its stunning beaches, coral reefs, and tourism-driven economy, saw a dramatic increase in .ai domain registrations following the launch of ChatGPT in November 2022. Vince Cate, who oversees domain registrations for Anguilla’s government, reports sales have nearly quadrupled, significantly boosting government budgets. Domain registration has become so lucrative that in January 2024 alone, Anguilla earned $3 million from it, with projections indicating this figure could double with renewals.
Notably, AI companies like stability.ai and character.ai, along with tech giants such as Google, Meta, and X (formerly Twitter), have secured their .ai domains, contributing to over 200,000 domain names registered in 2023. This influx of registrations is expected to generate substantial revenue for Anguilla, with forecasts suggesting income could reach €72 million ($78.3 million) by 2025.
One early adopter, Igor Gabrielan, has been purchasing .ai domains since 2011, amassing 750 domains targeted for sale. Despite his extensive collection, Gabrielan awaits the interest of major companies in his premium domains. His experience highlights the potential for domain investments in the AI sector, albeit the market for Spanish-language .ai domains remains untapped, reflecting the global dominance of English in the tech industry.
Anguilla’s success story with .ai domains echoes other instances where countries have capitalized on their domain extensions, such as Tuvalu with .tv domains. However, Anguilla stands out by managing registrations internally, ensuring the government benefits directly from this revenue stream. As the AI industry continues to expand, Anguilla’s .ai domain is poised to attract further attention and investment, solidifying its unexpected role in the global tech landscape.
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