$300k .AI Domain Name Flipped for $1.5m

AutopilotR
Estimated read time 8 min read


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The BBC published an article discussing the rising sale prices of select .AI domain names. In 2023 alone, NameBio has archived nearly $5 million worth of publicly reported .AI domain name sales, which is a substantial increase over the prior years which have hovered in the $1m/year range.
Within the last year, there has been a massive increase in venture funding for AI-related startups and businesses, and many are choosing to use .AI domain names for their ventures. This has buoyed the market, leading to increasing asking prices and sales.
I previously wrote about the largest .AI domain name sale that was publicly reported. NPC.ai sold via Sedo for $250,000 over the Summer. You.ai recently sold for $700,000 to HubSpot Founder Dharmesh Shah. Interestingly, according to Escrow.com CEO Matt Barrie, this isn’t even close to the largest sale. Here’s what Mr. Barrie had to say:
“These AI domains are being bought by both start-ups looking for their name online, and those trying to flip those domains to make some money,” says Matt Barrie, chief executive of Escrow.
He adds that one domain name speculator bought an AI website name for $300,000, only to then sell it some months later for $1.5m. “There are speculators in the space who realise companies want the best branding.”
Unfortunately, the domain name that was sold for $1.5 million was not shared. Perhaps someone will take credit for it in the future, but it remains a secret for now.
One other quote from Barrie that I will definitely reference in the future is related to good domain names in general. I think it is a great bit to encourage a company to outlay the capital to acquire a domain name:
“Consider a top domain as a permanent discount on your marketing budget.”
What are your thoughts on state names .ai
Well, YOU.AI sold for 700 K last month
I’ve gotten over 57 inquiries and offers for one of my .AI domains on AFTERNIC … it’s a short one word perfect for AI and that one word is taken in over 450 extensions…
I had hoped it would be the first 7 figure .AI reported sale ..damn it – i registered that one and about 50 others in late 2015.. I don’t even recall many people even be aware of .AI domains until maybe 2017 but I was a cofounder of an AI startup in Canada in 2015 so I was aware how big AI would be ..it’s exceeded my predictions
Thanks – I saw the NPC.ai reference in the BBC article and completely forgot about You.AI. I updated my article to reflect that. There’s a reason I don’t write many articles in the evening.
A domain name speculator buys a .AI (DOT AI ?!?!?!) domain name for $300,000, and only MONTHS later sells it for $1.5 million?! … And of course, as per usual, the domain name was NOT divulged … Hmmm!
The fact that the name is not being shared makes the “$300K acquisition” and the “$1.5M flip” sound kind of .XYZ-ish. Just saying. 🙂
This was shared by the CEO of Escrow.com in a BBC article. His company, Freelancer.com, is publicly traded on the Australian Securities Exchange (FLN: https://finance.yahoo.com/quote/FLN.AX/). I presume there are rules and regulations in place that would prohibit him from sharing something that wasn’t true.
I agree with you regarding rules and regulations, Elliot. I was only being slightly doubtful 🙂
It’s just that I think when a name with an extension (ccTLD) such as .AI is quick-flipped by the investor for $1.5M within months of acquisition and nothing is shared tends to cause some doubt. Just my opinion.
I would think sharing the domain name and some details would be great for the registry and quell any doubt regarding these types of quick flip, VERY high price sales. Again, just my opinion.
It won’t be a permanent saving on their marketing budget, will be a a cash suck on the rest of their business.
Doesn’t matter how much they paid, gravity will always take effect much like with Overstock and O.co
ROFL. Yep, let’s compare this to Overstock and .co.
What would you like to compare it to bro, all the .com alternative success stories? That’s a long list isn’t it?
.com always has the crown. The masses determined that. Provenance.
.AI has no comparison. This is where your thought processses are breaking down. It’s very specific, convenient as in just 2-letters right of the dot and just so happens to define the most significant advancement in the history of mankind.
So, in the scheme of everything else, yeah. It’s unprecedented. But to say it would dislodge .com is nuts.
It does what it says on the tin. That is both precise and poetic.
Most of my .AI domains (over 30) were acquired between 2017 and early 2022 by companies that had received at least 20 million in funding, and whatever they paid (usually low 5 figures each) was a blip on their marketing spend.
The 5 Ai domains that I sold in the SEDO .AI auction in July appear to have been purchased by a holding company. All of these domains were one word domains that fit the AI sector and were/are taken in at least 250 extensions.
Is .COM king? absolutely
but .AI is #2 until another extension knocks it off the 2 spot.
Is the 700 K price for YOU.ai in october legit? absolutely
and what about the 5X flip of 300 K? no idea — i’m sure a domain sleuth could locate a 300 k .ai sale, if reported and verified, then see if that .ai domain is at least live, but i don’t recall a 300 k .ai transaction unless that was stack.ai
Do I think a company with a well-established brand in .com will rebrand to a shorter one word .AI? No — even if the company is AI-centric. I would be very surprised if this happens but I could see them getting an .AI and redirecting to the .com or building out even a smaller .AI site for keyword search with “AI”
I think its duet.ai
It could be x.ai or agent.ai. I have several good .ai names due to the fact that I was the first to develop the .ai zone. car.ai store.ai space.ai ads.ai bots.ai apps.ai fin.ai med.ai metaverse.ai avatars.ai sport.ai …
Agents.ai was purchased for $125,000, quite insane