How Anguilla’s .ai Domain Transforms an Idyllic Paradise into a Tech Haven
In an idyllic corner of the Caribbean, near the famed St. Maarten, lies an unassuming island nation that is suddenly finding itself at the forefront of the technological revolution. With a modest population of 15,000, Anguilla, best known for its pristine white beaches and azure waters, is witnessing an economic transformation thanks to the burgeoning field of artificial intelligence. It turns out that Anguilla’s possession of the internet domain name .ai has transformed into an unexpected goldmine due to the meteoric rise in AI’s popularity.
Previously, Anguilla’s economy was heavily dependent on tourism and somewhat tainted by its notoriety as a tax haven. The British overseas territory, which boasts lenient tax regulations, was blacklisted by the European Union in October last year. However, the winds of change are blowing as this slice of paradise has stumbled upon an unexpected revenue stream through its domain name.
A myriad of companies in the artificial intelligence sector, succinctly referred to as AI, see a synergy between their industry and Anguilla’s .ai domain. Vince Cate, who manages domain sales on behalf of the Anguillan government, recounts that the sale of these web addresses commenced years ago. However, it was after the introduction of ChatGPT in November last year that the domain sales skyrocketed. Although Cate remained reticent regarding the exact figures, third-party data suggests a growth rate exceeding 100%. Astoundingly, Anguilla currently holds 16 times more domain names than it has residents.
Cate divulged that the domain name revenues have quadrupled compared to the previous year. For perspective, Anguilla had projected revenues of €6.4 million from domain name sales for 2022. With the current trajectory, the figure is projected to soar to a staggering €26 million or more.
However, it’s important to consider that part of this windfall is attributable to a significant price hike in the .ai domain. Berend van Dalfzen, CEO of domain name vendor Realtime Register, shed light on this aspect. “Earlier this year, a .ai domain name became a quarter more expensive,” he stated. In Europe, the price of the domain ranges from €109 to €164 per annum, in stark contrast to the more ubiquitous .com domain which costs a mere fraction of that amount.
This development serves as an enlightening case study in how a small Caribbean nation, traditionally reliant on tourism and loose tax policies, is adeptly navigating the currents of the global economy, seizing unforeseen opportunities presented by the technological zeitgeist.
The allure of a .ai domain name is not solely grounded in pragmatism. According to Arno Vis, CEO of Rotterdam-based domain name vendor Openprovider, there’s an element of branding cachet for companies in the artificial intelligence space to sport a .ai domain. “It is ‘fun and sexy’ to have a .ai name if you are active in artificial intelligence,” Vis explains. The scarcity of succinct and desirable .com domains also buoys the domain’s appeal.
Anguilla, whose history with colonialization dates back to 1631 when the West India Company set foot on its shores, is not alone in experiencing an unexpected boon due to its domain name. Tuvalu, for instance, became a magnet for television companies due to its .tv domain name. Interestingly, the domain name organization ICANN commented that rising sea levels threaten Tuvalu’s very existence, and the domain could metaphorically sink with it.
Similarly, the British Indian Ocean Territory has seen a surge in popularity with its .io domain, particularly among tech companies. The domain’s acronym resonates with the tech sector due to its semblance to input/output (IO), a fundamental process in computer communication. With over a million .io domain names in existence, Berend van Dalfzen draws parallels to the potential that .ai holds and, by extension, the enormous benefits Anguilla could reap.
As one would imagine, such a sudden influx of revenue might have the citizens of Anguilla over the moon. However, Vince Cate, an American expatriate in Anguilla, opines that the gravity of this financial windfall has yet to fully sink in for the local population. Traditionally, the island’s economy was bolstered by affluent tourists and the offshore industry, which contributed to making Anguilla one of the Caribbean’s wealthier regions. Nonetheless, income disparities are significant, as per the United Nations. Furthermore, Hurricane Irma in 2017 and the COVID-19 pandemic severely hampered the economy.
But with artificial intelligence being touted as the future, Anguilla seems poised to hear the cash registers ringing for the foreseeable future. This newfound wealth can be instrumental in settling debts and enhancing public services. Cate, who identifies as a libertarian, suggests an unconventional utilization of the .ai domain profits: rolling back taxes. “When I came here, there were no taxes, but now some have been introduced. I am a libertarian; from me, they can eliminate taxes with the proceeds,” he remarks.
As the tale of Anguilla unfolds, it encapsulates the serendipitous intersection of history, geography, and technology, reminding the world that even the smallest players on the global stage can sometimes steal the spotlight in the most unpredictable ways.
