.ai Domain Sales Bring in About 54.4 Billion Won Last Year
Account for Nearly a Quarter of Total Fiscal Revenue
The small Caribbean island of Anguilla has experienced an unexpected windfall thanks to the artificial intelligence (AI) boom. The country’s internet domain, .ai, shares the same abbreviation as AI, prompting companies and individuals around the world to rush to register it.
According to the BBC on September 1 (local time), the Anguillan government earned 105.5 million Eastern Caribbean dollars (approximately 39 million US dollars, or about 54.4 billion Korean won) from domain name sales last year. This accounted for about a quarter (23%) of the country’s total fiscal revenue in 2024. During the same period, tourism contributed 37%.
Anguilla is a British overseas territory located in the northeastern Caribbean, with a population of only about 16,000. The total area is 91 square kilometers, making it slightly larger than Ulleungdo (72.9 square kilometers).
In the early days of the internet in the 1980s, each country was assigned a unique internet domain: South Korea received .kr, the United States .us, and Japan .jp. Anguilla was assigned .ai. At the time, this domain had little significance, but with the recent rapid growth of the AI industry, demand has surged.
Earlier this year, Dharmesh Shah, co-founder of the American software company HubSpot, purchased the you.ai domain for about 700,000 US dollars (approximately 900 million Korean won). Recently, high-value transactions have continued, including cloud.ai (600,000 US dollars) and law.ai (350,000 US dollars).
.ai Domain Revenue Becomes New Pillar of Anguilla’s Finances
The number of domain registrations has increased more than tenfold over the past five years and nearly doubled just last year. Currently, over 850,000 .ai addresses are registered. The Anguillan government projects domain revenue will reach 132 million Eastern Caribbean dollars (about 48.84 million US dollars, or approximately 68.2 billion Korean won) this year, and 138 million Eastern Caribbean dollars (about 51.06 million US dollars, or approximately 71.3 billion Korean won) in 2026.
Anguilla, which has long depended heavily on tourism, has always been vulnerable to hurricane damage. In a recent report, the IMF noted that ".ai domain sales play a crucial role in diversifying Anguilla’s economy and enhancing its disaster resilience."
In October last year, Anguilla signed a five-year contract with the US domain company Identity Digital and moved its .ai management system to global servers. The exact costs have not been disclosed, but the registration fee is reportedly around 150 to 200 US dollars, with a similar renewal fee every two years. High-demand domains are auctioned off, with some fetching hundreds of thousands of dollars. The proceeds go to the Anguillan government, while Identity Digital is said to take about 10% as a commission.
The Anguillan government plans to use the growing revenue for long-term investments such as building a new airport, expanding tourism infrastructure, and improving medical services.
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