As the AI industry flourishes, the once-obscure country code top-level domain (ccTLD) '.ai' belonging to Anguilla has unexpectedly seen a surge in popularity, transforming into a highly coveted piece of 'virtual real estate.' The number of registrations for this domain has skyrocketed, jumping from 144,000 in 2022 to over 1 million by early 2026. Tech behemoths such as Alibaba, Tencent, and Baidu have been fiercely competing for '.ai' domain names closely associated with their brands, often resorting to UDRP arbitration as a means to protect their brand sovereignty, prevent traffic diversion, dilution of brand value, and malicious hijacking. However, the outcomes of these arbitration efforts are not always favorable; for example, Alibaba's arbitration application for 1688.ai was denied.

In the secondary market, the trading prices of '.ai' domain names have reached astonishing levels, with bot.ai once commanding a staggering US$1.2 million. The price disparity for high-quality domain transfers can even be a thousandfold, giving rise to a professional domain name investment industry chain, where institutional hoarding is becoming increasingly prevalent. The delay in trademark and brand management among AI companies has created opportunities for cybersquatters, compelling AI startups to revise their naming strategies. Many teams now find it necessary to allocate resources for domain name defense early in their startup journey, with some opting for compound or coined words to avoid conflicts.

Related supporting services have also emerged to cater to this growing demand. This battle for domain names not only underscores the intense competition for scarce cognitive resources within the AI industry but also highlights a reshuffling of power and capital within the startup ecosystem. In this rapidly evolving landscape, domain names have become a crucial entry ticket in the AI race, shaping the strategies and fortunes of companies vying for a foothold in this cutting-edge field.