The structural, optical, and electronic properties of an insulating material prepared by the thermal oxidation of AlN thin films on Si have been studied by a number of different experimental techniques. The thermal oxidation at 1100 degrees C of reactively sputtered AlN films on Si wafers was found to result in the formation of an oxide with a relative Al to O concentration near Al2O3 with small amounts of incorporated N. The structure of the AlO:N oxide could be varied between amorphous and polycrystalline, depending on the preparation conditions, and the oxide surface was found to be approximately three time smoother than the as-sputtered ALN films, Metal-oxide-silicon capacitors had an oxide charge density of about 10(11) cm(-2), capacitance-voltage characteristics similar to pure SiO2, and a dielectric constant of 12.4. Infrared measurements yielded a refractive index of 3.9. These results indicate that thermally oxidized AlN films show promise as insulating structures for many integrated circuit applications, particularly for the case of III-V and group III-nitride based semiconductors. (C) 1997 American Institute of Physics.