Eureka! You’ve just had a great idea for a new .ai domain name so you rush to your device or app to secure it before anyone else can. You visit your favourite domain registration company (us, I hope) do a domain search and thankfully the domain is still available. Wait a minute though, the price is $US200! And you ask yourself: Why are .ai domains so expensive?
After the launch of ChatGPT and other Artificial Intelligence related tools, general interest in .ai domains has gone through the roof, with overall .ai domain registrations increasing from 140,000 total domains in July 2022 to 248,000 in June 2023. This means a lot of people will be trying to figure out why .ai domains are so much more expensive than .com domains.
The simplest answer is that domain registration companies usually set retail prices based on the wholesale cost price to them, which means that the primary reason why .ai domains have a high retail price is because .ai domains have a high wholesale price.
Another factor is that .ai domains can only be registered in two-year intervals, effectively doubling the retail price, although most companies only advertise the one-year price to try and keep the price as attractive as possible. $US99 per year does look much better than $US198.
Case closed. You can now decide if buying a .ai domain is worth the extra money (hint: Yes, it is!) but read-on if you want to delve a little deeper.
The Domain Registry and Domain Registrar Relationship
As talked about earlier, domain registration pricing is usually dictated by wholesale cost. If a domain wholesale price is expensive, then the retail price for customers will also be expensive.
The wholesale price is set by the domain registry for that TLD (Top-Level Domain). Domain registries oversee the management and operations of TLDs, including pricing and registration time frames. In the case of the .ai TLD, the domain registry is the Government of Anguilla. That’s right, it’s not really an Artificial Intelligence domain but is for the Caribbean island of Anguilla.
Most countries and territories around the world have a domain registry that has been delegated its own TLD, or rather in the case of country domains, its own ccTLD (country-code Top-Level Domain). You can see the full list of delegated TLDs here if you’re interested.
Domain registries will set the price they deem most appropriate for their managed TLD and then offer licenses to domain registrars, who are companies like us here at OnlyDomains, allowing them to officially sell that TLD as part of their inventory. When a domain registrar licenses a TLD, it’s referred to as being accredited.
In simplest terms, the relationship between a domain registry and domain registrar is basically the same as a product creator and a department store. The product creator sells their product to the department store for a price and then the department store sells the product to their customers at a higher price. It’s a little different for the domain name industry since domains are digital products but you get the idea.
Yes, .ai Domains Are Expensive, But Also Worth It.
Despite the wholesale price set by the registry being more expensive than other domain names you can register, .ai is still a very good domain and worth the price, for several reasons:
- Artificial Intelligence and machine learning is all the rage at the moment and the industry is only going to get bigger, which will keep the .ai domain extension in high demand long into the future. A .ai domain allows you to target the Artificial Intelligence audience directly, making a .ai domain marketable and memorable.
- .ai domain registrations only total in the hundreds of thousands, instead of the hundreds of millions like .com so you’re much more likely to get the domain you truly want, without having to compromise.
- Despite being the official domain of Anguilla, Google recently changed how it treats .ai in its search engines. It’s no longer seen as the domain for Anguilla but as a generic domain. This means Google treats .ai the same as .com.
Ready to Buy Yours?
Making .ai Domains Less Expensive
Yes, .ai is a great choice for a domain name and well worth the extra money. To make the decision between choosing a .ai and another domain extension as easy as possible, we’ve set our retail price to one of the lowest available amongst domain registrars, with new .ai domain registrations currently costing $US77.99 per year ($US155.98 for two years). It will be very hard to find a cheaper .ai domain price.
We hope this article has given you the answer on why .ai domains are so expensive but also given you confidence that .ai is still the right choice of domain for you. Don’t delay any longer and register your awesome .ai domain name.
