I think they found the one weird software dev in Anguilla willing to do it. The "Offshore Information Services" link on the .ai wikipedia page "registry" link redirects to the dudes wikipedia page.
> Cate engaged in civil disobedience against U.S. cryptography policy by setting up a webpage inviting readers to "become an international arms trafficker in one click". The page contained an HTML form which, when submitted, would e-mail three lines of Perl code implementing the RSA public-key encryption algorithm to a server in Anguilla; this could have qualified as unlicensed export of munitions under U.S. law at the time.
https://en.wikipedia.org/wiki/.ai https://en.wikipedia.org/wiki/Vince_Cate
A colorful character to say the least, and exactly the kind of person I'd expect to be running the ccTLD of a small caribbean island.