Latest Data: Over a Quarter of Startups Use .ai Domains, Ushering in a Golden Age for AI Brand Domains

As the AI startup boom continues to heat up, startups' branding choices are quietly changing.

A recent study released by top registrar Identity Digital shows that among startups incubated by Y Combinator (YC) and Techstars, a staggering 28% use .ai domains, far exceeding other tech-related extensions like .io and .tech. This demonstrates that .ai domains are evolving from a tech label to a core asset for startup brands.

YC and Techstars are among the world's most influential startup accelerators. The former has successfully incubated star projects like Airbnb and Stripe, while the latter continues to provide funding, mentorship, and resource connections to early-stage entrepreneurs worldwide. Startups selected for these two platforms often represent the latest trends and the strongest growth potential in their industries.

Report Data Shows .ai Domains Are Going Mainstream

This report analyzed domain name usage by over 4,000 YC and Techstars startups between 2020 and the first half of 2025. Highlights include:

1. Overall usage of non-traditional top-level domains (nTLDs) reached 54%, an increase of over 50% year-over-year; meanwhile, usage of traditional .com domains decreased by 28%;

2. .ai domain usage has grown by over 300% in five years, leaping from a marginal option to a mainstream extension;

3. .ai has the highest penetration rate among all non-.com domains, becoming the second most popular extension among tech startups after .com;

4. 85% of startups using .ai registered a fully branded domain, compared to only 54% of .com users.

These data demonstrate that .ai domains are not only more industry-relevant but also offer significant advantages in brand consistency and registrability.

What does this mean for domain name investors?

This report sends clear signals to investors focused on AI and domain name trends:

.ai is in its early to mid-stage of rapid growth, with both awareness and practical application rising, making it a prime time to enter the market.

High-quality .ai domains are becoming increasingly scarce, and short, industry-specific terms, popular keywords, and other domains offer significant appreciation potential.

Real and stable demand from startups is the core driving force behind active trading in the .ai secondary market.

From brand recognition to strategic assets, .ai is making the transition from an "option" to a "standard feature."

If .com was the ticket to internet entrepreneurship in the previous generation, then .ai has become the "digital identity card" for brands in the AI era.