Since 2020, the number of global .ai domain registrations has surged from less than 50,000 to over 850,000, a more than 16-fold increase in just five years, doubling in the past 12 months alone. This growth momentum shows no signs of peaking, with registrations already projected to increase by 60% year-on-year by early 2025.

When the penetration rate of artificial intelligence technology reaches 67%, the two-letter domain name ai.com is listed for sale for a record-breaking $100 million. If the transaction is successful, it will surpass the 2019 record of $30 million for voice.com, becoming the most expensive single domain name transaction in internet history.

This auction, ostensibly a battle for digital assets among tech giants, is in reality a strategic grab for user mindshare. Tech companies understand that in the attention economy, top-level domains are the "super billboards" of the digital world.

Unlike traditional .com domains, the .ai suffix is ​​becoming an "industry passport" for tech companies to showcase their AI technology DNA. This straightforward expression saves companies significant brand education costs.

The explosive growth of .ai domains is no accident; it's driven by three forces: technological revolution, brand demand, and a shift in investment logic.

From a technological perspective, artificial intelligence has become a core direction of global technological development. Currently, nearly 80% of companies worldwide have applied AI technology in some aspect of their business, providing a solid foundation for the demand for .ai domains. At the same time, the traditional .com domain market is nearing saturation, with high-quality keyword resources almost exhausted. Entrepreneurs are forced to resort to lengthy combinations or pay high premiums. In this context, the more industry-specific .ai domains become a natural choice.

The growth of .ai domains also benefits from the recognition they receive from global search engines. Google has decided to treat .ai domains as equivalent to .com generic top-level domains, meaning that .ai domains have equal competitiveness in search visibility.

Companies are demonstrating diversified strategies in their use of .ai domains. For example, chip giant Nvidia has adopted a sophisticated dual-domain strategy, maintaining parallel operations of nvidia.com and nvidia.ai.

The former handles traditional business, while the latter focuses on showcasing AI solutions. This division of labor maintains brand consistency while highlighting technological specificity. Data shows that users spend 37% more time on NVIDIA's AI business page than on the main site, confirming the traffic-driving effect of specialized domain names.

Tech giants are consolidating their market position by acquiring .ai domains related to their own brands. Besides NVIDIA, 23 of the world's top 100 technology companies have established complete strategic ".ai" domain name systems.

.ai domains have not only become strategic brand assets but have also formed an independent investment market. In 2023, American tech entrepreneur Damesh Shah purchased "you.ai" for $700,000, setting a new record for this type of domain transaction.

Following closely behind, "cloud.ai" sold for $600,000, and "law.ai" also sold for $350,000. The registration price of these popular domains is only about $150-200, and the renewal price every two years is similar, but their premium can reach thousands of times.

High-priced transactions aren't limited to the secondary market; in the primary registration market, short .ai domains are also highly sought after. Of the top 20 domains sold in the third quarter of 2025, 17 were extremely short domains of 1 to 4 characters, reflecting the market's extreme pursuit of brand memorability.

Anguilla, the Caribbean island nation originally home to the .ai domain, has become a "winner" in this technological wave. This British Overseas Territory with a population of only 16,000 is enjoying the digital dividends it unexpectedly received in the 1980s.

The Anguillai government and the technology company Identity Digital have partnered on a revenue-sharing model to manage the .ai domain. The government receives the majority of the sales revenue, while the company is responsible for technology operations and building a global distribution network.

Domain revenue provides Anguilla with a key tool for economic diversification. The country plans to invest this revenue in new airport construction, public healthcare, and infrastructure upgrades, attempting to use the "certainty" of the digital economy to offset the "natural risks" facing the tourism industry.

The success of .ai domains is not an isolated phenomenon; it represents a new model of market-oriented operation for thematic country code top-level domains. As the domain name system upgrades, companies can use suffixes to convey their values, technological stances, or community affiliations.

In the future, domain name selection will increasingly become part of corporate strategic decision-making, rather than just a routine task for the brand department. The choice of suffix will directly reflect a company's technological stance and market positioning.

Emerging domain names are gradually shedding their "hype" label and evolving towards branding and long-term sustainability. With the continued development of AI technology, the value of .ai domains will grow alongside the technology they represent.