Summary:
Across the world, AI companies are paying millions to a small, little-known country just to secure a license without which their business could stall. But why is this tiny island suddenly charging tech giants such a hefty price?
How a Tiny Island Nation Turned Its Forgotten .Ai Domain : The Rise of a Forgotten Domain
Back in the 1980s, when the internet was just emerging, each country was assigned its own web domain extension. The U.S. got .us, the U.K. got .uk, and a small Caribbean island called Anguilla was handed .ai.
Read In Hindi-इस छोटे देश का लाइसेंस क्यों बना AI कंपनियों की सबसे बड़ी मजबूरी? जानिए पूरा खेल
At that time, no one thought much about it. But with the explosive rise of Artificial Intelligence, this very domain has now become one of the most valuable assets in the digital world.
Today, tech giants across the globe – from Silicon Valley to Asia – are queuing up and paying millions to own an .ai website. In fact, earlier this year, entrepreneur Dharmesh Shah shelled out a staggering $700,000 (₹5.81 crore) just to acquire you.ai.
Demand Skyrockets: 10X Growth in Just 5 Years
Domain registration trackers reveal a shocking trend: in the last five years, the number of .ai websites has grown tenfold.
- In 2020 → fewer than 50,000 domains existed.
- Today → over 850,000 domains are active.
- In the past year alone, the figure has doubled.
Clearly, what was once a digital afterthought is now a booming business.
A Storm-Battered Economy Finds New Life
Until recently, Anguilla was known only as a tourist paradise, mostly visited by American travelers. In 2023, the island welcomed a record 111,639 tourists.
But there was a problem. Nestled in the Atlantic hurricane belt, Anguilla suffers huge financial losses almost every season due to storms. Tourism alone could not sustain its fragile economy.
That’s where .ai domains stepped in as a lifeline.
The IMF’s latest report even acknowledges that this new revenue stream is stabilizing the island’s finances.
Millions Flowing In – With Bigger Targets Ahead
According to Anguilla’s 2025 budget:
- In 2024 → the island earned $42 million (₹342 crore) from domain sales, nearly 25% of its total revenue.
- By 2025 → revenue is expected to climb to $53 million (₹430 crore).
- By 2026 → it could touch $55 million (₹449 crore).
Not bad for a country of just 16,000 people.
British Territory, But an American Deal
Although Anguilla is a British Overseas Territory, it enjoys significant autonomy in domestic matters. After Hurricane Irma devastated the island in 2017, the U.K. provided £60 million in aid.
To professionalize domain management, Anguilla signed a 5-year agreement in October 2024 with U.S.-based Identity Digital, a leading internet domain registry firm.
The Domain Auction Frenzy
The base price for an .ai domain ranges from $150 to $200, with renewal fees every two years. But premium names? They sell for jaw-dropping sums.
- July 2025 → cloud.ai sold for $600,000.
- August 2025 → law.ai fetched $350,000.
In each sale, Anguilla earns a significant cut, with Identity Digital taking around 10% commission.
Not Alone: Other Islands Cashing In
Anguilla isn’t the only country monetizing its domain.
Back in 1998, the Pacific island of Tuvalu licensed its .tv domain to U.S. firm Verisign, initially for just $2 million a year. The deal later grew to $5 million annually, but Tuvalu eventually felt shortchanged and struck a new deal with GoDaddy in 2021.
Small Islands, Big Power
What once seemed useless is now rewriting economic destiny. For Anguilla, .ai isn’t just a domain—it’s a ticket to global relevance.
A country of just 16,000 residents has suddenly become the gatekeeper of the AI era, quietly shaping the future of the world’s digital economy.
