The .AI domain boom: what the websites behind the trend reveal

The .ai domain has experienced an unprecedented surge in popularity, with the past few years seeing registrations skyrocket. Initially affiliated with the small Caribbean island of Anguilla, the .ai extension has become a highly sought-after digital asset, largely due to its association with artificial intelligence. Tech companies, startups, and even large corporations have rushed to secure their slice of this internet real estate, making it a go-to choice for AI-related branding. We look into the data to see what’s really behind .ai domains and if the rise is just a hype.

The .AI Domain's Rise

The growing interest in artificial intelligence has elevated the .ai domain from a relatively obscure country-code top-level domain (ccTLD) to a trendy choice for tech companies worldwide. Companies like OpenAI and Stability.ai have embraced the extension, making it synonymous with cutting-edge AI innovation. Just as investors flocked to AI stocks, domain investors have rushed to secure .ai domains, viewing them as the domain market’s next big thing. Eager to capitalize on potential resale opportunities and future value appreciation, they have snapped up as many premium keywords as possible, leading even generic or non-tech terms to be registered with “.ai.”

A Closer Look at Website Trends

While the surge in .ai domain registrations is impressive, the quality and usage of these domains tell a different story. As of October 2024, there are 204,700 active .ai websites, including online stores, blogs, and parked domains. A closer analysis reveals that placeholders and parked domains dominate the landscape, making up 61% of all active sites. Business and e-commerce websites account for 23%, while content-focused sites make up 11%. The remaining share consists of low-content sites, frame sites, forums, and blogs.

The Rise of Placeholders

To understand the meteoric rise shown in Figure 1, we examined whether the total increase is primarily driven by increased placeholders. Our analysis found that between October 2023 and September 2024, the number of placeholder .ai domains surged by an astonishing 2,271% (Figure 2). The majority (88%) of these placeholders are managed by registrars affiliated with Team Internet Group PLC (formerly CentralNic Group PLC), including 1api.net, Centralnic Canada Inc., and Hexonet Services Inc. Furthermore, 92.3% of the placeholders are hosted by Amazon.

The influx of parked and placeholder domains comes with drawbacks. For one, it can create a misleading perception of activity within the .ai domain space. Although registration numbers are high, many of these domains do not provide value in terms of content or active use, which can make it harder for genuine startups to find available and relevant domain names. As our previous analysis of .com placeholders showed, many of them have a short lifespan.

Additionally, the practice of domain parking drives up the cost of acquiring .ai domains, as owners of premium domains often set high resale prices. For cash-strapped startups, this presents a significant barrier to obtaining a domain that truly fits their brand.

Growth in Business and E-Commerce Websites

While the growth rate for business and e-commerce websites is lower compared to placeholders, it remains notable, with increases of 477% and 734% over the past 12 months, respectively (Figure 2). These websites are predominantly located in the United States, followed by Germany, India, the United Kingdom, Canada, and the Netherlands (Figure 3).

Next, let’s take a look at the topics associated with the different business, e-commerce, and content websites of the .ai top-level domain (Figure 4). The “Software & Data” category unsurprisingly dominates nearly half (44.9%) of all topics, confirming that software development and data analysis are central to the AI conversation. “Marketing & Advertisement” follows as a distant second at 14%, indicating AI's growing role in transforming digital marketing strategies. Other notable sectors include “Telecom” (7.4%) and “Entertainment” (4.6%). Topics like “Financial” services (4.4%), “Art & Design” (4.1%), and “Science” (3%) highlight AI's diverse applications across various fields, though they trail behind the more dominant themes. Meanwhile, “Health & Medical” (2.5%) and “Business & Careers” (2.2%) represent emerging areas where AI is making significant strides, albeit with a smaller share of the content focus.

With the entry of large language models (LLMs) and generative tools into the mass market, AI has been widely hailed as groundbreaking and revolutionary over the past year—and the surge in .ai domain registrations reflects this excitement. However, most of these websites are placeholders or parked domains, often created solely for resale, essentially just occupying space until replaced by something more substantial. As we have shown in a previous analysis of .com placeholders, many tend to disappear quickly. For the remaining business and content-driven websites, it remains to be seen how stable the trend will be. As the initial hype cools and doubts emerge about the true capabilities of AI, it’ll be worth watching how demand for the .ai top-level domain evolves in the coming months and years.

Ultimately, the .ai domain's future success will depend not just on the number of registered domains, but on how many of these domains are actively contributing to the advancement of AI and technology in meaningful ways. For startups and businesses in the AI space, building an active online presence with a .ai domain could offer a significant competitive advantage—if they choose to go beyond just reserving a name.