Why are .AI domain prices increasing? These points are crucial for investors!

For a long time, the .com domain was the “gold standard” in the internet world, symbolizing legitimacy and global recognition. However, in recent years, the .ai domain has seen a dramatic rise, transforming from the country code for Anguilla to the preferred identifier for AI companies. Registrations, post-sale transaction volume, and investor interest have exploded. The surge in prices has underlying logic and presents new opportunities and challenges for investors.

The rise of the .AI domain is significant: registrations are projected to double by 2025, nearly quadruple the level seen by mid-2023. The standard annual retail price is $70-100, higher than most generic top-level domains (gTLDs). In the post-sale market, premium .AI domains often fetch five or six figures, with transactions like You.ai ($700,000) and Cloud.ai ($600,000) exceeding seven figures. Leading AI companies like Character.ai and Perplexity.ai have also adopted them as their primary domains, making them a popular brand in the tech world. Startups favor .ai domains for their practicality and symbolic value. When ideal .com domains are unavailable or prohibitively expensive, .ai offers an alternative while conveying an innovative, future-oriented identity, aligning with the AI ​​boom. In a competitive funding market, .ai domains can signal to investors that they are “on board the AI ​​wave,” a cultural influence that many new gTLDs lack.

For investors, .ai is currently one of the most profitable non-.com domains. Data from platforms like NameBio and Sedo show that .ai domains are actively traded and fiercely competitive. Furthermore, due to their high annual fees, retail investors are less likely to enter the market, making premium domains more valuable and offering long-term appreciation potential. However, key investment strategies are crucial: prioritize single-word, short, memorable, and brandable .ai domains; track post-sale pricing with NameBio; and balance .com domain allocations—after all, .com remains a cornerstone of digital real estate. Compared to .com, .ai has its own advantages and disadvantages: .com enjoys greater recognition and serves as a global benchmark for trust; .ai offers advantages in usability, with relatively manageable prices for premium domains. It also transmits more precise signals in the AI ​​field. For example, Perplexity.ai quickly gains category credibility, while Perplexity.com lacks this correlation. However, .ai also carries risks. Its longevity depends on the strength of the AI ​​trend. If the AI ​​hype fades in the future, the domain’s value may be affected.

The rise of .ai domains isn’t a short-term hype, but rather a reflection of the cultural and economic shifts underway as AI becomes a key technology for the next decade. For entrepreneurs, it’s a symbol that aligns with the industry narrative; for investors, it presents a strong opportunity beyond .com. However, investment discipline is crucial, focusing on high-quality domains that can withstand hype cycles and endure. Currently, the popularity of .ai domains remains undiminished. In the era of AI, it’s more than just two letters; it represents a fusion of signals, strategies, and narratives.