Anguilla Is Earning Millions Riding The AI Wave. Without Using Any Tech Whatsoever
Anguilla's AI-related revenues were around $30 million in 2023, a staggering sum for an island with a population under 20,000.
Anguilla, a picturesque British territory known for its sun-kissed beaches and coral reefs, is quietly becoming one of the most unlikely beneficiaries of the global artificial intelligence boom — thanks to two little letters: .ai.
What was once an obscure top-level domain reserved for the island’s own internet addresses is now among the most in-demand digital real estate, with AI startups and tech titans clamouring to snap it up. From Stability.ai and Character.ai to X.ai, and even Google.ai and Microsoft.ai, everyone wants a piece of Anguilla’s digital suffix.
And the numbers reflect that frenzy. As reported by Bloomberg, Domain registrations for .ai websites surged in 2022, nearly doubling to 287,432, according to Vince Cate, who has managed Anguilla’s domain registry for decades. Cate now estimates domain-related revenues were around $30 million in 2023, a staggering sum for an island with a population under 20,000 and a GDP of just over $300 million in 2021.
“We’re blowing past that,” Cate said. “We did not anticipate ChatGPT.”
From Cryptocurrency to Domains: A Digital Evolution
Cate, originally from the US, moved to Anguilla in 1994 to work on what he calls an early cryptocurrency-based payment project. Soon after, he took charge of managing the island's .ai domain registry. The growth was gradual — until November 30, 2022, when ChatGPT launched and everything changed.
“Since November 30, things are very different here,” Cate noted.
Between December and March, demand for .ai domains “shot up,” although Cate says the trend has since steadied. Yet, even with demand cooling slightly, the gold rush continues. With each two-year registration costing $140 — a hike from $120 in April — registrars like GoDaddy and NameCheap are handing Anguilla a significant slice of tech’s latest obsession.
Branding Meets Business in the AI Era
For startups, the right domain can signal legitimacy, innovation, and industry relevance. And in a competitive field like AI, branding matters. That’s why companies are rushing to secure web identities that align perfectly with their names and missions.
“Going with the .ai domain name was the natural choice,” said Daniel De Freitas, co-founder and president of Character.ai, a platform that lets users create custom chatbots.
Even though .ai domains remain minuscule compared to the mammoth 160 million .com domains, the impact on Anguilla is outsized. The island brought in $7.4 million from domain registrations in 2021 and is expected $8.3 million in 2023. Now, Cate predicts revenue could hit $25 to $30 million, nearly a quarter of Anguilla’s projected $107 million in recurring revenue for 2023.
“It just seems to be one more example of how we’re going through an AI gold rush right now,” said Mar Hicks, associate professor of data science at the University of Virginia.
AI Craze Brings Risks and Rewards
While this digital windfall boosts Anguilla’s post-pandemic recovery, some experts warn of potential pitfalls. Hicks anticipates a rise in cybersquatting, similar to the early dot-com era when companies had to fight to reclaim their brand identities online.
Still, Hicks believes the current enthusiasm may taper off eventually, as the AI hype cools. Cate, however, remains optimistic.
“I think we’re in the early days of artificial intelligence, so I think we’re still in the early days of .ai domain names,” he said.
For now, this tiny island in the Caribbean finds itself riding the crest of the AI wave — and cashing in handsomely.
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