Friend, an AI companion company, recently announced a significant investment of $1.8 million in acquiring its domain name, friend.com, as part of a total fundraising effort of $2.5 million.

This domain purchase, made on February 6 for $1,887,843, underscores the high stakes and costs associated with premium domain names in the tech industry.

Founder Avi Schiffmann confirmed the domain purchase amount through a tweet, sharing a transaction screenshot from Escrow.com to provide transparency.

Schiffmann's company is currently valued at $50 million and has attracted investments from notable figures, including Morning Brew CEO Austin Rief and Perplexity CEO Aravind Srinivas.

The company is gearing up for the launch of its AI device, expected to hit the market early next year at a price point of $99, with no ongoing subscription fees.

Schiffmann has described the device as a personal response to his feelings of loneliness, highlighting its intended role as a source of emotional support.

The AI device resembles existing companions like Replika and is designed to be worn as a microphone necklace that texts responses directly to the user.

Once connected via Bluetooth, the device is 'always listening' and allows users to interact with it by simply pushing a button.

A launch video has been released, showcasing the device in various social scenarios, indicating its capability to provide feedback on social interactions, such as approving dates.