October 15th 2024.
The rise of artificial intelligence has brought immense benefits to various parties, including chatbot creators, computer scientists, and investors of companies like Nvidia. However, one unexpected beneficiary of this boom is the small Caribbean island of Anguilla.
It all started two years ago when ChatGPT, a groundbreaking chatbot, was launched, signaling the beginning of the AI era. This sparked a digital frenzy as companies raced to secure their own .ai websites, resulting in a digital gold rush. And this is where Anguilla comes into the picture.
Back in the 1990s, the British territory was given control of the .ai internet address. This was just one of the many obscure top-level domains assigned to countries and territories based on their names. While these domains were intended to represent a connection to a specific region or language, it was not always a requirement.
Today, big players like Google and Elon Musk have embraced the .ai domain, with google.ai showcasing their AI services and x.ai serving as the homepage for Musk's Grok AI chatbot. Even startups like Perplexity, an AI search engine, have jumped on the .ai bandwagon by acquiring .ai websites and redirecting users from their .com versions.
Thanks to the surging interest in AI, Anguilla's earnings from web domain registration fees have quadrupled to $32 million last year. This now accounts for about 20% of the government's total revenue, a significant increase from the previous 5% before the AI boom.
According to Ram Mohan, chief strategy officer at Identity Digital, the company responsible for managing the .ai domain, the government collects a fee of $140 for every two-year renewal of a .ai website. They also earn from the registration of new addresses and the sale of expired ones, with some sites fetching tens of thousands of dollars.
This sudden influx of money has had a direct and positive impact on the economy of Anguilla, a tiny island with a population of around 16,000. Blessed with stunning coral reefs, crystal-clear waters, and picturesque white sand beaches, the island is a popular destination for wealthy tourists. However, the pandemic and a powerful hurricane have taken a toll on the tourism industry, leaving many locals in need.
Although Anguilla does not have its own AI industry, Premier Ellis Webster hopes that it will one day become a hub for this cutting-edge technology. He admits that it was pure luck that the .ai domain was assigned to Anguilla rather than nearby Antigua, as both places have the same letters in their names.
Webster acknowledges that the revenue from domain registrations has taken some pressure off the government's finances and has helped fund essential projects. However, he also recognizes the need for diversifying the economy and not solely relying on this source of income.
To keep up with the rapidly growing number of .ai websites, Anguilla has signed a deal with Identity Digital to help manage the effort. This agreement, which will be in effect by the start of next year, is expected to bring in even more revenue for the government while also enhancing the security and resilience of the web addresses.
According to Mohan, Identity Digital, which also manages Australia's .au domain, will migrate all .ai domain services to its systems. This will not only ensure a smoother registration process but also protect against cybercriminals looking to exploit the hype around AI.
In the past, some islands, like Tokelau in the Pacific Ocean, have faced issues with their .tk websites being associated with spam and phishing due to outsourcing their registry services. Mohan assures that with Identity Digital's technology, any suspicious sites will be taken down promptly.
Moreover, the company's global servers will make it faster to access .ai websites as they will be closer to users. This means a significant decrease in loading time, from milliseconds to microseconds.
The Premier also expects the revenue from domain registrations to increase even further, possibly doubling from last year's $32 million. This money will go towards financing the expansion of the airport, providing free medical care for senior citizens, and completing a vocational technology training center at the high school.
Additionally, the income also serves as budget support for other projects, such as a national development fund that can be used for hurricane recovery efforts. This is crucial as the island usually depends on assistance from its administrative power, Britain, which comes with conditions.
In conclusion, the unexpected windfall from the .ai domain has been a game-changer for Anguilla, providing much-needed funds for the government and boosting the local economy. With the help of Identity Digital, the island hopes to continue reaping the benefits of this digital gold rush while also safeguarding against potential threats.
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