The Frenzy for .ai Domains: Bubble or the Next Generation of .com?

As Zhipu (智谱) launched its z.ai domain in its bid to become the first global large-scale model company to go public, and fin.ai sold for a million dollars, the .ai domain has sparked a global frenzy for registration. This country code top-level domain, originally belonging to Anguilla, has become a hot commodity in the tech world due to its perfect match with the abbreviation for “artificial intelligence.” Some see it as a scarce asset in the digital age, predicting it will replace .com as the new mainstream; others warn that the frenzy hides a bubble, repeating the mistakes of the dot-com bubble.

The explosive value of .ai domains is not unfounded. Its core advantage lies in the precise positioning of “domain name as identity,” allowing companies to instantly link themselves to the AI ​​industry and reduce brand communication costs. With only 26 single-letter .ai domains available globally, they have already been snapped up by giants like Google and Microsoft, demonstrating the obvious asset premium driven by scarcity. Data shows that by the end of 2024, .ai domain registrations exceeded one million, with an annual growth rate of over 30%, and the average transaction price of high-quality domains exceeded $250,000, highlighting the intense capital investment. For AI startups, .ai domains are not just website addresses, but also a “strategic necessity” for attracting investment and showcasing their technological prowess.

However, amidst the frenzy, signs of a bubble cannot be ignored. Many companies have rushed to register .ai domains without core AI technology support, becoming mere marketing tools for “AI whitewashing.” Take the failed unicorn Builder.ai, for example; despite owning a .ai domain, it was essentially a traditional outsourcing business, ultimately going bankrupt due to financial fraud. More importantly, .ai domains cannot shake the foundation of .com: the mature ecosystem built by 157 million .com domains globally, decades of user habits, and the natural trust 70% of consumers have in .com are all advantages that .ai domains cannot surpass in the short term. Furthermore, .ai domains face multiple challenges, including cross-border compliance, frequent security attacks, and insufficient user awareness.

In fact, .ai domains are more likely to complement, rather than replace, .com. Just as .io domains were popular among developers, .ai is becoming the “consensus suffix” in the AI ​​ecosystem, while .com will remain the preferred choice for general business applications. More and more companies are adopting a “dual domain strategy,” retaining the .com domain for public access while using .ai to highlight their technological attributes. This complementary model may become the norm.

Ultimately, the value of a domain name depends on the company’s strength. The frenzy surrounding .ai domains is essentially a microcosm of the AI ​​industry wave, supported by technological trends as well as speculative investment. It won’t be the next .com, but it has the potential to establish unique value in a specific AI niche. After the bubble bursts, the real value will be found in companies with core technologies and high-quality services, not just a flashy domain name.