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China’s Z.ai Launches Cheaper Open-Source AI Model Than DeepSeek—But at What Cost?

China’s latest leap in artificial intelligence isn’t just about speed or scale—it’s about accessibility and affordability. And it could challenge the status quo in global AI development.

Chinese AI startup Z.ai (formerly Zhipu) has just released a trio of new open-source large language models (LLMs), with claims that they’re not only powerful—but cheaper to run than China’s own DeepSeek. The move further accelerates China’s momentum in the AI arms race, raising both opportunity and concern across global tech communities.

What Z.ai Just Released

Z.ai introduced three models under its GLM-4.5 series:

  • GLM-4.5: The flagship model, aiming to rival GPT-4 and Claude AI in performance.
  • GLM-4.5-Air: A lightweight version optimized for lower-cost operations.
  • GLM-4.5-Flash: A free model tailored for coding, reasoning, and agent tasks.

While these models echo the sophistication of tools from OpenAI, Google, and Anthropic, there’s a critical distinction: they’re fully open-source. That opens the door for developers, startups, and researchers to customize or deploy the models without licensing fees—a significant benefit in an era where many frontier models remain closed and expensive.

The Catch: Privacy, Censorship, and Trust

However, with openness comes a deeper concern: data privacy and geopolitical risk.

Models developed in China, including DeepSeek and now Z.ai’s GLM-4.5, have sparked global scrutiny due to potential data transfer risks. American analysts and even OpenAI’s Global Affairs team have flagged Chinese LLMs as problematic, citing opaque data handling practices

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