The rapid progress of AI technologies has caused an incredible rise in the popularity of Anguilla's national domain .AI - its name coincides with the abbreviation of the phrase Artificial Intelligence. And many domain investors shell out tens and hundreds of thousands of dollars for domain names that seem to them very promising and capable of bringing huge profits in the near future. However, their expectations may be somewhat high. While investments in domains in the .AI zone are flowing like a river, investments in artificial intelligence technologies themselves are declining.
This piece of news was reported by The Domains, citing a TechCrunch publication. The total investment in these technologies amounted to $189.2 billion in 2023, which is immediately 20% lower than a year earlier. Private investment fell from $103.4 billion to $95.99 billion, and the volume of corporate mergers and acquisitions of companies working in the field of artificial intelligence - from $117.16 billion in 2022 to 80.61 billion in 2023. At the same time, 2022 also showed a decrease in investment volume compared to 2021. Thus, investors are increasingly less willing to invest money in this market.
According to Aaron Fleischman, managing partner of the investment company Tola Capital, investors are coming to understand that their hopes for exponential growth in the income of companies and startups in the field of artificial intelligence are far from being fully justified. He cites the company Stability AI as an example. At the end of 2022, it was valued at $1 billion. At the same time, in 2023 its revenues amounted to $11 million, and operating expenses - 153 million.
Obviously, investors don't like this kind of economy. And domain investors should keep in mind that .AI domain names purchased today for 5-6 figure sums may soon turn out to be not such an attractive asset as they are now.
