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China's latest AI model claims to be even cheaper to use than DeepSeek

  • Startup Z.ai announced on Monday at the World Artificial Intelligence Conference in Shanghai that its new GLM-4.5 AI model costs less to use than DeepSeek's model.
  • Z.ai has introduced GLM-4.5, a model roughly half as large as the one developed by DeepSeek, which runs efficiently on just eight Nvidia H20 chips, reflecting a broader trend among Chinese companies to focus on reducing operational expenses.
  • The announcement builds on DeepSeek's earlier breakthroughs, including a $6 million training cost and pricing undercutting global competitors, with Chinese AI companies leveraging domestic hardware to bypass U.S. chip restrictions.
  • Z.ai’s CEO Zhang Peng shared with CNBC that their GLM-4.5 model prices input tokens at $0.11 per million, compared to DeepSeek R1’s $0.14, and output tokens at $0.28 per million, significantly lower than DeepSeek’s $2.19, demonstrating notable reductions in cost.
  • This affordability signals intensified competition in China's AI sector, suggesting Western firms must adapt to maintain relevance while accessible models may empower smaller global users and reshape enterprise adoption.
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NBC New York broke the news in New York, United States on Monday, July 28, 2025.
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