Zhipu Unveils Cost-Effective, Open-Source AI Model GLM-4.5

Zhipu launches the open-source AI model GLM-4.5, promising cost-effective access for developers.

Key Points

  • • Zhipu launches open-source AI model GLM-4.5.
  • • The model claims to be cheaper than existing alternatives like DeepSeek.
  • • Z.ai's model uses eight customized Nvidia H20 chips.
  • • GLM-4.5's launch coincided with the World Artificial Intelligence Conference in Shanghai.

On July 28, 2025, Zhipu, a Chinese AI startup recently rebranded as Z.ai, launched its open-source AI model GLM-4.5, marking a significant development in the accessibility of advanced AI technology for developers and researchers. The model was introduced during the World Artificial Intelligence Conference in Shanghai, a prime event for showcasing advancements in the AI sector.

GLM-4.5 is designed to be significantly cheaper to use than current competitors, particularly DeepSeek. Z.ai's CEO, Zhang Peng, indicated that GLM-4.5 operates on just eight Nvidia H20 chips, allowing it to run efficiently while requiring approximately half the resources necessary for DeepSeek's model. Notably, the pricing for GLM-4.5's input and output tokens is competitive, setting costs at 11 cents per million input tokens and 28 cents for output tokens. This is a marked reduction compared to DeepSeek's charges of 14 cents and $2.19, respectively.

In addition to its cost advantages, GLM-4.5 utilizes an 'agentic' architecture that enhances its operational accuracy by autonomously breaking tasks into manageable sub-tasks. This innovation reflects a growing trend in AI towards models that foster cost efficiency and ease of use within the open-source framework, promoting wider collaboration and innovation in the field.

Z.ai’s approach, which allows users to freely download and experiment with the GLM-4.5 model, aligns with industry shifts towards open-source solutions, as it encourages the rapid development of AI applications. The decision to operate solely on customized Nvidia H20 chips highlights Z.ai's strategic adaptation to local market conditions, particularly in light of U.S. export regulations.

As Z.ai continues to delve into competitive pricing and user accessibility, the implications of GLM-4.5's launch could redefine the landscape of AI development in China and beyond, further encouraging the emergence of open-source technologies.