As the artificial intelligence (AI) wave sweeps across the globe, the small Caribbean island nation of Anguilla has unexpectedly become a major beneficiary. This British overseas territory with just 16,000 residents is reaping substantial digital dividends from its .ai domain name, allocated back in the 1980s, during the current AI commercialization boom.
In the 1980s, when the internet was still in its infancy, each country was assigned unique website addresses to navigate this emerging digital world. For instance, the United States received .us, while the United Kingdom got .uk. At the time, Anguillans had no idea this would become their future jackpot.
**1. Domain Economy**
According to Anguilla's government 2025 budget draft, the country generated 105.5 million East Caribbean dollars (approximately $39 million USD) from .ai domain sales in 2024, representing 23% of total annual revenue. In comparison, tourism, the traditional economic pillar, accounts for 37% of revenue, meaning domain income has reached nearly two-thirds of tourism earnings.
More notably, .ai domain registrations have surged over 16-fold in five years, exploding from fewer than 50,000 in 2020 to over 850,000 currently, with registrations doubling in just the past 12 months alone.
Premium domain transactions continue setting new records: American tech entrepreneur Dharmesh Shah purchased "you.ai" for $700,000 earlier this year, establishing a new high for such domains. In July, "cloud.ai" sold for $600,000, while "law.ai" was acquired for $350,000 this month.
These premium domains typically register for $150-200, with similar renewal fees every two years. The Anguilla government operates under a "revenue-sharing" arrangement with U.S. technology company Identity Digital, where the government receives the majority of sales revenue while Identity Digital takes approximately 10% commission and manages the migration of domain hosting servers to global networks, mitigating hurricane damage risks to local infrastructure.
**2. Historical Precedent**
Anguilla's "domain economy" is not unique. Pacific island nation Tuvalu began generating steady income from its .tv domain (matching the English abbreviation for "television") as early as 1998. Although partnership arrangements have been adjusted due to contractual disputes, the domain has provided substantial long-term revenue.
Anguilla's distinctive advantage lies in the strong association between .ai and artificial intelligence. As giants like OpenAI and Google continue driving AI enthusiasm, demand from enterprises and entrepreneurs for "AI-branded" domains has exploded. Domain tracking platform analysts note that ".ai domains, which intuitively convey AI identity, have become scarce digital identifiers in the digital age."
For Anguilla, domain revenue represents not just "windfall income" but a crucial tool for economic diversification. While the country's tourism industry performs well in the luxury market (welcoming over 110,000 visitors in 2024, a record high), it remains vulnerable to annual autumn hurricane seasons. Hurricane Irma devastated the island in 2017, requiring external aid for reconstruction.
Anguilla now plans to invest domain revenues in new airport construction, public healthcare, and infrastructure upgrades, attempting to use digital economy "certainty" to hedge against tourism industry "natural risks." British foreign affairs departments have expressed support for this "innovative revenue generation," stating it helps enhance Anguilla's "fiscal self-sufficiency capacity."
**3. Domain Name Stories**
1) **The icon.com Legend** In 2025, artificial intelligence advertising technology company Icon acquired the premium domain icon.com for $12 million (approximately 87 million RMB), setting a domain transaction record for the year and ranking sixth on the all-time highest price list.
2) **Jack Ma's Toilet Inspiration** In 1997, NetEase founder William Ding was tripped by a "cat" during dial-up internet access, suddenly inspiring him to register numeric domains like 163.com and 126.com. Today, 163.com has become one of the most valuable domains in Chinese internet history.
3) **The Musical Connection of .fm** The Federated States of Micronesia's .fm domain, due to its homophone with "FM radio," has been widely adopted by music platforms. For example, the globally renowned music community Last.fm uses the .fm suffix, and .fm domain auction prices have risen accordingly, becoming an "identity marker" for the music industry.
4) **Alibaba's Global Vision** To ensure brand internationalization, Jack Ma spent $10,000 to acquire alibaba.com from a Canadian. This decision helped Alibaba avoid brand recognition obstacles during globalization, while its stock ticker "BABA" sparked discussion due to its phonetic resemblance to "daddy" in Chinese, becoming an unexpected cultural phenomenon highlight.
5) **The First .com Domain** On March 15, 1985, American computer manufacturer Symbolics Inc. registered the world's first .com domain, Symbolics.com. After holding the domain for 25 years, it was sold and now serves as a "digital relic" mixing online museum content with advertising space, witnessing the internet's journey from birth to commercialization.