In just a few short years, artificial intelligence has changed how we live and work. Few could have predicted the speed with which AI tools have become an essential part of many industries, and AI is rapidly integrating into our personal lives too. It powers everything from search and discovery to the music we listen to and the routes we take to work.
Just like any other kind of business, AI brands need their own online real estate. This is one of the main catalysts behind a sustained rise in demand for .ai domains, which customers increasingly recognize as a premium brand asset. While .com will probably always be king when it comes to domains, the rise of AI — and the parallel rise of .ai domains — is creating new opportunities for brands and investors alike.
How And Why .AI Domains Surged
The release of ChatGPT in November 2022 first brought attention to .ai domains. Data from Domain Name Stat shows that, after steady but slow .ai uptake through 2020 and 2021, registrations shot up in 2022. Year over year, .ai domain registrations grew 50% in 2022 and 230% in 2023 before soaring to 300% in 2024. According to Domain Name Wire, today there are almost 600,000 .ai domains registered – that’s a tenfold increase from November 2022. On Atom.com, .ai revenue has seen a 4700% increase since 2022.
It makes sense that funding for AI-related startups rose in tandem with sales of .ai domains. Levels of VC funding for early-stage startups built around artificial intelligence jumped 80% year-on-year between 2023 and 2024. Many of these startups likely used some of that funding to purchase a first domain or to upgrade to a brand-boosting exact-match domain designed to raise their profile in an increasingly crowded AI market. While some of them will have chosen .coms, there were many exceptionally strong single-English word, English phrase, and brandable .ai domains available. So, the demand for .ai domains was driven up, and in turn, trust in the extension grew. In fact, nearly 1 in 10 dollars of Atom’s revenue now comes from .ai. .Com won’t be knocked off the top spot, but it’s a real change in the market.
As demand for .ai continues to grow, so does their value. .ai domains didn’t break into the top 100 sales of 2022, but just a year later, we saw the sale of npc.ai for a reported $250,000 and you.ai for $700,000. Since then, the momentum has continued to build, with a sharp rise in high value transactions. According to NameBio, which tracks publicly reported domain sales, .ai accounted for twenty of 2024’s top 100 domain sales.
Why .AI Domains Represent Value For Brands
AI, and .ai domains, are now relevant to many brands. And, although their value is going up, .ai domains still represent a relatively affordable alternative to .com. I spoke to one of our buyers, Jon Davidman, who purchased Girlfriend.ai in December 2024 as a platform for his AI-driven companionship startup. Davidman’s goal, he says, was to “secure a domain that was simple, memorable, and instantly recognizable.” While .com domains do exist at the intersection of these requirements, Davidman says the decision to use a .ai domain was strategic, as “.ai domains have become synonymous with innovation, credibility, and industry leadership.”
Similarly, an Atom customer who acquired Ace.ai stated that their main aim was “an iconic, easy-to-remember, short name”. When they began searching, they weren’t wedded to the idea of .ai at all. In fact, they were “fiercely debating if we should go with a .com or .ai.” Ultimately, though, the Ace team landed in the same camp as Davidman. After searching the Atom.com marketplace for strong domains, they chose Ace.ai. For a next-gen, AI-first browser targeting a young and tech-savvy audience, the .ai extension felt like a natural fit. They wanted to “shy away from the all too familiar .com and go with the product’s core promise – .ai”.
It’s clear that AI enables and represents innovation. It’s a rapidly developing environment, and in order to maintain a competitive brand position or domain portfolio, brand leaders must stay alert to the latest trends and emerging technologies. Leveraging AI hype to get more eyes on your brand and using a .ai domain as a part of that might offer interesting opportunities for many established brands that need to keep up with the AI upstarts. And if you’re building a brand around a truly AI-powered product? A .ai address still offers industry alignment, growing credibility, and access to brandable names that might be out of reach in .com. While top-tier .ai domains are increasingly competitive and pricing has climbed, the extension has taken on new weight as a branding signal in today’s fast-changing tech environment.
What’s more, the growth of the .ai domain sector also means that these domains tend to hold their value. They are strong, brand-boosting online homes and they can also be sold, often at a profit, if things don’t work out as you planned. Indeed, Davidman’s new domain girlfriend.ai sold twice in 2024, and is likely increasing in value as AI reaches every corner of our lives.
Is .AI Right For Your Business?
There’s no doubt that the growth in the .ai domain market is exciting. They’re a great choice for truly AI-driven businesses, and as a newly popular TLD there are still many single-word and extremely brandable .ais on the market. This makes them a tempting option for all new businesses and startups, but they simply aren’t the right choice for everyone.
.Com domains might not be part of the zeitgeist in 2025, but .com remains the most trusted extension — and that’s unlikely to change anytime soon. So, while a strong .ai domain might seem tempting for the founder of a fashion brand, a social media startup, or any number of other new businesses, it’s likely a bad investment if you intend it to be the primary home of a brand that isn’t truly AI-centric.
One additional consideration: while .ai has become shorthand for artificial intelligence, it’s technically the country-code domain for Anguilla, a small British territory in the Caribbean. Anguilla has embraced the AI boom, and the domain is stable — but unlike generic extensions like .com or .net, ccTLDs are managed by national registries, which means there’s always a small degree of geopolitical or administrative risk. It’s not a reason to avoid .ai — but if you’re making a long-term bet on the domain, it’s something to keep in mind.
Many AI companies have chosen a .com, deciding that the ubiquity of the TLD adds more value than the industry-specific gains of .ai or the branding power of a shorter, super-brandable .ai domain. Ultimately, this is a choice you and your team will have to make if you’re building an AI business. Just like Davidman and the team behind ace.ai did, you should consider how a domain will resonate with your target audience. You should also consider potential investors, how it might help or harm your branding, the domain’s affordability, and many more factors.
.AI Is Part Of The AI Revolution
.Com remains the most predominant TLD, making up almost 40% of all websites and commanding instant trust. But more specific industries like AI can be a great use case for other extensions, and .ai is definitely making an impact. While the .ai domain isn’t right for every new startup, those building core AI technologies may find that a .ai domain reinforces their positioning and resonates with early adopters, whether they’re B2B like copy.ai or D2C like girlfriend.ai.
According to Davidson, “AI is no longer confined to automation and productivity; it is becoming a more personal, interactive presence in people’s lives. The rapid adoption of AI-driven relationships shows that this is not just a niche interest but a growing global trend.” As this trend continues, many more domain names under the .ai extension will likely gain value. We haven’t yet seen a seven-figure .ai domain sale, but it feels like only a matter of time.
Read the full article here
