Tech entrepreneur Ian Leaman faced a costly challenge when buying a domain for his AI start-up, Pantry AI. He discovered Pantry.ai was already taken and had to negotiate with its owner.
Leaman’s initial $2,000 offer was countered with a $12,000 demand. Eventually, they settled on $12,000 with a payment plan. He values the domain for its strong, memorable name, a rarity nowadays.
AI-related domain prices are soaring, with some fetching six figures. For instance, npc.ai sold for $250,000 and service.ai for $127,500. This trend reflects the growing excitement around AI technologies.
Obtaining a domain involves over 1,000 registrars accredited by The Internet Corporation for Assigned Names. Prospective buyers check availability on these sites. If unclaimed, domains cost as little as £15 annually. However, for claimed names, a domain brokerage is needed to negotiate purchases.
Joe Udemme, CEO of Name Experts, notes a spike in demand for .ai domains. Prices range from five to six figures for short, brandable names.
The total value of AI-inclusive domains hit $20m, up from $7m a year earlier. AI is now a popular term in domain sales, according to Afternic.
Matt Barrie, CEO of Escrow, observes that startups and speculators drive these sales. One speculator made a hefty profit, buying a domain for $300,000 and selling it for $1.5m. A well-chosen domain can boost online visibility and brand recall, acting as a marketing asset.
Popular AI domains typically combine a single word with .ai, seen as prime digital real estate. Leaman preferred Pantry.ai over PantryAI.com for his business, which aids consumer goods manufacturers.
Andrew Rosener, CEO of MediaOptions, believes the AI domain trend is here to stay. Unlike the fleeting crypto craze, AI’s significance is bolstered by substantial investment and its appeal to businesses. However, he advises against overspending on AI domains unless the company is AI-focused.
