Why Are AI Domains So Expensive?

What Makes .ai Domains so Valuable?

Within the ever-changing technological world, we have witnessed the rise of a new trend: AI domains. With the increasing influence of Artificial Intelligence (AI) in our interaction with technology, these domain names have become valuable assets for start-ups and established businesses alike.

While registering an AI domain may cost more compared to choosing conventional alternatives such as .com, the associated benefits are tremendous.

This article explains why AI domains are becoming increasingly expensive, looks at their value proposition, and provides advice for those considering having one for their venture in a Web that is constantly evolving.

Why Everyone is Buying AI Domains

(Update August 2025)  According to W3Techs, the usage of AI domains has risen from just over 0.1% to 0.2% of all websites. Considering that only 200 million of 1.13 billion websites worldwide are being actively maintained, around 400,000 websites carry the .ai extension. 

A study revealed a whopping 146% increase in .ai domains in just 18 months (248,609 domains as of June 2023 vs. 533,068 in October 2024). The growth trajectory is expected to continue rising in the years to come. What’s interesting is that a large number of .ai domains are being used by high-traffic websites, indicating that this domain carries more value than other popular TLDs.  

Ideally, if you’re launching a new business or if your existing website is doing well, you would want to acquire an AI domain to grow your audience and expand your reach. Below, we’ve listed a number of factors contributing to the high demand for AI domains:

Rapid Growth of the AI Industry

The artificial intelligence sector is growing rapidly, featuring a staggering growth rate of over 35% CAGR.  The AI market’s current valuation is just over $757 billion, but it is expected to grow up to $3.68 trillion by 2034. AI adoption in businesses has risen to 78%    

This increasing dependence on AI and automation also impacts the demand for AI domains. Hence, the number of AI domains is increasing day by day.

Better Resale Value than Other Domains

The high demand for AI domains is linked to a high future value. According to Afternic’s post, .ai domains have a higher Sell Through Rate (STR) and Average Sales Price (ASP) than other TLDs in the year 2024. This is just the beginning, as experts believe that the gaps in figures will continue to increase, making AI domains more valuable than before.

Investor Hype

What’s so fascinating about .ai domains is that these domains offer much higher Revenue Per Domain (RPD) than any other domain, making them more investment-worthy.  Staggering growth and jaw-dropping resale prices make these domains ideal for flipping. If you’ve got a bunch of AI domains, you might be sitting on a goldmine.

Sense of Urgency (or FOMO)

The rising trend of acquiring premium, brandable, or AI-related domain names ignited the sense of urgency throughout the market. That’s probably why the market is acting fast, often snapping up domains without even making a strategy for using them.

As said above, today’s available domain could be tomorrow’s goldmine. It’s a speculative rush that motivates individuals and businesses to acquire AI domains to gain a competitive advantage.   

More Funding Opportunities

Whether launching a startup or extending your tech business, investing in AI domains can boost your chances of funding. Early-age startups built around artificial intelligence received 80% more in VC funding in 2024 than the previous year. 

Most of these startups are likely to choose an AI domain for their domain names to show their commitment.

Strategic Move

The impact of AI domains is so intense that even those who are not involved in AI-related products or services are actively looking for these domains. Why? 

• They might view AI-branded domains as a potential solution to future-proof their brands. 
• They might have future plans of integrating automation or AI-backed tools to reshape their businesses.

Whether it’s to safeguard their brand, prepare for a potential pivot into AI-enhanced services, or simply keep options open in a fast-evolving digital economy, securing an AI domain has become a form of digital insurance for the future.

 

Why You Must Get an AI Domain

We’ve seen how AI domains are gaining popularity (but also .aiagent top-level domains in Web3 world) and constantly making headlines around the world. If you’re still contemplating whether to get one or not, keep reading. 

Brand Recognition as Indication of Cutting-Edge Technology

The “AI” shows any company’s participation in this field that is growing faster than anything else. There’s nothing more fast-changing than the AI industry itself. So, if you’re into hi-tech, software, or automation, acquiring AI domains for your business can position you among the leaders in the innovation space. Just like how established online businesses became synonymous with .com domains, AI domains are creating a similar niche in relation to ventures focusing on artificial intelligence.

Supply and Demand Dynamics

Unlike .com domains, which are widely available across numerous sites, AI domains have a limited secondary marketplace. Obviously, the demand-supply gap is wider than in other domains. This scarcity makes AI domains more expensive over time.  Keep in mind that more companies want their names to represent their brands’ knack for artificial intelligence. It’s up to you to decide whether you want to drown in a crowded market or get yourself noticed by customers.

Investment Potential

As the AI revolution is still in the early stages of development, one can expect further growth in the value of ‘.ai’ domain extensions. It is, therefore, likely that investors who speculate on future growth in AI domain prices will see good returns on their investments.

Short and Memorable Domain Names

Most of the .ai domain names tend to be short and memorable, so potential customers can easily remember them when looking for them online. This could be crucial in establishing a solid online presence and brand identity.

 

Examples of Businesses Using AI Domains

Some big companies have embraced the use of .ai domains for their ventures. Here are some examples:

• OpenAI.com: A company dedicated to advancing artificial intelligence technology while remaining friendly to people.
• ChatGPT: An OpenAI advanced large language model chatbot.
• AIartist: A website suitable for an art creation company run by AI technology.

These instances illustrate how businesses in different facets of AI are employing “AI” domains to build strong online identities and become known within the AI sphere.

If you’re thinking about investing in AI-related domains, you’ll find plenty of choices and strong reasons why it’s a smart move. The AI sector offers numerous opportunities and clear advantages for investors (check  our abstract in cooperation with The Domain Standard  about "The Rise of Domain Finance").

So several factors contribute to the higher price tag of AI domains compared with conventional ones:

High Wholesale Prices

The Anguillan government, which manages the .ai domain registry, sets a relatively high base price for these domains. This affects the retail pricing set by domain name registrars themselves.

Minimum Registration Periods

This is in contrast to .com domains, which can be registered on an annual basis; however, a two-year minimum registration term is often required for .ai domains. As a result, the initial amount doubles when companies and individuals want to secure an AI domain.

Brandability and Industry Specificity

As stated before, .ai domains provide a unique opportunity for brand creation for any company that deals with AI. This inherent brand value results in higher prices than other generic domain extensions.

Domain Hacking Potential

It is about using the name of a domain together with its extension in order to create a new word or phrase. Future.ai and learn.ai are some examples of domain hacking involving .ai extensions. The possibility of such creative uses of these can further lead to higher costs for these domains.

Buying an AI Domain: Key Considerations Before Purchase

Now that you’re convinced, it’s time to take a moment before you make that purchase. There are certain things you should consider. 

Budget Considerations

Compared to other choices, AI domains tend to be pricier by nature. Evaluate your budget carefully and determine if this additional cost aligns with your business needs.

 

Long-Term Value

What future benefits could an AI domain bring you in terms of developing your brand and online presence? It could be one of the following or even both:

• Increased brand awareness
• Better search engine rankings

Your future financial opportunities can justify the upfront cost.

Domain Alternatives

When evaluating an AI domain, do not discard alternative domain extensions that may serve as affordable substitutes that still manage to convey your interest in the AI industry. 

Some of these alternatives are (also think about the Web3 ecosystem as well):

1. .tech – This extension unambiguously states that this is about technology under the broader umbrella of AI.
2. .machinelearning – This one was specifically made for businesses that concentrate on machine learning only. For the unversed, machine learning is a subcategory within artificial intelligence
3. .robot – A field connected with robotics development or selling will need it as it depends heavily upon progressions made within the artificial intelligence area.
   
   

Target Audience

Think about how familiar your target audience is with AI domains. Analyze your audience’s demographics. 

• Do they belong to Gen Z, or are they old enough to use tech devices?
• How’s their lifestyle, hobbies, and other chores?
• Are they tech-savvy enough to differentiate between AI domains and .com domains?

Use the .ai extension if this particular group connects it heavily with AI. But if most of them don’t know what extension means, you can choose something like .machinelearning.

Long-Term Business Goals

Your domain name choice should be aligned with your long-term business plans. If you want to take your venture further than just AI, a more generic domain extension, such as .com is a more appropriate option. But if you do not plan on moving outside the boundaries of the AI industry, then a .ai domain can help cement your position there.

Where to Find Your Perfect AI Domain

Now that we have explored all the above aspects carefully, let’s find out how to find the perfect AI domains for your needs. This is where Freename.io comes into play:

• Extensive AI Domain Selection: Many AI-related domain names are available at Freename, including creative combinations and potential hacks for domains. You can thus find a unique and memorable name for your brand that shows its connection to artificial intelligence (such as '.aiagent domains').
• Competitive Pricing: Startups and businesses with varying budgets can access these domains, as they are competitively priced by Freename.
• Additional Domain Management Tools: This suite also offers additional tools for managing your domain.
  
  

.ai Domains Prices (update  2025)

According to Accio a website specializing in AI-driven B2B reports, the value of .ai domains has reached unparalleled heights. This upward trend, which commenced in 2023, shows no signs of abating. As demonstrated by the table below listing top domain selling prices, the B2B market is actively seeking out .ai-related domains. Top .ai domain in Fin Tech reached 1 millon dollars (see table below (source: Accio).

 

.ai domain	domain value	Year Sold
Fin.ai	1,000,000 USD	2025
X.ai	800,000 USD	2024
You.ai	700,000 USD	2023
BC.ai	800,000 USD	2024
Twin.ai	95,000 USD	2025

Haven't decided yet what domain to purchase? Check our Guide 'What Domains to Buy in 2025'.

Conclusion

AI domains offer a unique opportunity for businesses or individuals looking to establish an online presence in the rapidly growing field of artificial intelligence (AI). Although they may be initially more expensive than traditional options, they offer long-term advantages in terms of brand visibility, search engine optimization, and potential investment value. Freename  can help you to find your perfect domain. Explore Freename and find your perfect AI domain