How the tiny Caribbean island of Anguilla has turned the AI boom into a digital gold mine

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The artificial intelligence boom is providing an unusual windfall for Anguilla, a tiny island in the Caribbean

The artificial intelligence boom has benefited chatbot makers, computer scientists and Nvidia investors. It's also providing an unusual windfall for Anguilla, a tiny island in the Caribbean.

ChatGPT's debut nearly two years ago heralded the dawn of the AI age and kicked off a digital gold rush as companies scrambled to stake their own claims by acquiring websites that end in .ai.

That's where Anguilla comes in. The British territory was allotted control of the .ai internet address in the 1990s. It was one of hundreds of obscure top-level domains assigned to individual countries and territories based on their names. While the domains are supposed to indicate a website has a link to a particular region or language, it's not always a requirement.

Google uses google.ai to showcase its artificial intelligence services while Elon Musk uses x.ai as the homepage for his Grok AI chatbot. Startups like AI search engine Perplexity have also snapped up .ai web addresses, redirecting users from the .com version.

Anguilla's earnings from web domain registration fees quadrupled last year to $32 million, fueled by the surging interest in AI. The income now accounts for about 20% of Anguilla's total government revenue. Before the AI boom, it hovered at around 5%.

Anguilla’s government, which uses the gov.ai home page, collects a fee every time an .ai web address is renewed. The territory signed a deal Tuesday with a U.S. company to manage the domains amid explosive demand but the fees aren’t expected to change. It also gets paid when new addresses are registered and expired ones are sold off. Some sites have fetched tens of