You're building an AI startup. Of course you want the .ai. Then you hit checkout and the price is $75, not the $10 you expected. It's billed two years at once.
That's not a glitch. It's how .ai works. The reasons are worth knowing before you commit hundreds of dollars to a domain. So here's why it costs what it does, plus five cheaper extensions that might serve your startup just as well.
Why .ai is so expensive
A .com typically costs $7 to $10 a year. A .ai costs many times that. The gap comes down to who owns the extension and how badly everyone wants it.
Put simply: one government controls the supply, the AI boom created the demand, plus a two-year minimum that doubles what you pay upfront. Anguilla earned an estimated $93 million from .ai fees in 2025, close to half its national revenue. They have no reason to make it cheap.
Just how big is the price gap?
Big enough that a single .ai costs more than a .com, .io, .net, .co and .xyz combined. Here's the cheapest new-registration price we track for each.
And remember, that $74.95 is just the starting price for two years. Renewals run higher and some registrars charge a lot more. To see the live .ai price across every registrar, check the price comparison tool.
When .ai is actually worth it
The price isn't always wrong. For the right company, .ai earns its cost.
If AI is the entire product, not a feature, the extension does real branding work. A name like yourcompany.ai tells an investor or customer exactly what you are in two letters. For an AI-first startup raising money and competing on positioning, that clarity can be worth the premium.
It's the wrong buy when AI is just one part of what you do, when you're bootstrapping and every dollar counts, or when you're registering a name for a side project you might abandon. In those cases the alternatives below make far more sense.
5 cheaper alternatives that still work
Each of these costs a fraction of a .ai and fits a different kind of AI company.
| Extension | From (new) | vs .ai | Best for an AI startup |
|---|---|---|---|
| .ai | $74.95 | baseline | When AI is the whole brand and budget allows |
| .com | $2.90 | far cheaper | The safe default everyone trusts and types |
| .io | $14.98 | 5x cheaper | Startup and SaaS feel without the .ai price |
| .co | $4.80 | far cheaper | Short, brandable, reads like "company" |
| .net | $5.00 | far cheaper | Tech fallback when the .com is taken |
| .xyz | $0.67 | cheapest | Cheap experiments and side projects |
"From" shows the cheapest new-registration price we track (May 2026). .ai requires a 2-year minimum, so the real upfront cost is roughly double the yearly figure. Renewals differ by registrar. Check the live price before you buy.
Which alternative fits you
.com at $2.90. The default that beats everything on trust and recognition. If yourcompany.com is free, this is almost always the smart move, AI startup or not.
.io at $14.98. The startup and developer favorite. It signals tech without the .ai price. It's been the SaaS standard for years. The closest substitute in feel.
.co at $4.80. Short, brandable and reads like “company.” A clean option when the .com is taken and you want something punchy.
.net at $5.00. The old-school tech fallback. Less trendy than .io but cheap, stable and widely understood.
.xyz at $0.47. The cheapest way to grab a name for an experiment or MVP. Fine for testing an idea before you spend real money on branding.
Note - Prices are based on current rates at the time of publishing and may change later.
How to decide in 30 seconds
• AI is your whole brand and you're funded? .ai, eyes open on the 2-year cost.
• Want maximum trust? .com, every time it's available.
• Want the startup look for less? .io or .co.
• Just testing an idea? .xyz, then upgrade later if it sticks.
Check what's available for your name on Search Domain. If you're still weighing extensions, our guide to .com vs .net vs .org vs .io breaks down each one. Settling on a .com? See the cheapest .com registrars in 2026.
The short version
A .ai costs $75+ because one Caribbean government controls it, demand is huge, plus a mandatory two-year minimum. It's worth it only if AI is your entire brand and you're funded.
For everyone else, a .com at $2.90 or a .io at $14.98 gives you a real domain for a fraction of the price. Buy the extension that fits your stage, not the one that's trending.
