In the 1980s, countries were assigned unique internet domain addresses, including Anguilla, a British Overseas Territory, which received the .ai domain. This designation has become increasingly lucrative due to the rise of artificial intelligence (AI) and the growing demand for .ai websites. Notably, tech entrepreneur Dharmesh Shah spent $700,000 on the domain you.ai to support his AI project focused on creating digital representations of individuals.
According to reports, the number of .ai domains has surged over tenfold in the last five years, with a doubling of registrations in the past year alone. This growth presents a potential financial benefit for Anguilla, which has a population of about 16,000 and an economy heavily reliant on tourism. In 2024, the territory earned approximately 105.5 million Eastern Caribbean dollars ($39 million) from domain sales, equating to about 23% of its total revenue.
Facing risks associated with hurricanes, a challenge for its tourism sector, Anguilla is looking to diversify its economic base through domain sales. The government anticipates further increases in .ai revenue, predicting a rise to 132 million Eastern Caribbean dollars in 2025 and 138 million by 2026, as more than 850,000 .ai domains currently exist, a marked growth from fewer than 50,000 in 2020.
To manage this revenue, Anguilla signed a five-year agreement with Identity Digital, a U.S. firm specializing in domain registries. The company has moved the hosting of .ai domains to its global server network to safeguard against potential disruptions caused by natural disasters.
The government of Anguilla also aims to use this newfound revenue for infrastructure improvements, including the construction of a new airport to enhance tourism and public services. An example of revenue-generating domain management can be observed in Tuvalu, which licensed its .tv domain. Anguilla’s strategy differs as it has opted for a revenue-sharing model rather than fixed payments. With ongoing interest in .ai domains, Anguilla’s future plans hinge on managing this income prudently for sustainable growth.
Source: https://www.bbc.com/news/articles/cn5xdp427veo?at_medium=RSS&at_campaign=rss