Zhipu AI announces second price cut in a month, CEO says “not a simple price war”

Zhipu AI announces its second price cut, reducing the cost of its GLM-4 model by more than half due to core technology advancements.

: Zhipu AI has announced a significant price reduction for its GLM-4 model, now costing RMB 0.10 per 1,000 tokens. CEO Zhang Peng explained that the move is due to advances in core technologies, not merely a price war. The company, supported by Tsinghua University, is actively expanding its market reach.

Chinese AI company Zhipu AI recently announced its second price cut in a month, significantly slashing the price of its GLM-4 model. The cost per 1,000 tokens for this model is now RMB 0.10, a reduction that CEO Zhang Peng attributes to improvements in the core technologies, rather than a simple price competition.

The price reduction comes amidst a competitive AI sector in China, where capturing market share is crucial. Zhipu AI's improved financial metrics allow it to engage in price reductions without incurring losses, highlighting its robust business strategy. The company processes over 40 billion tokens daily, indicating its substantial operational capacity.

Backed by Tsinghua University and major tech investors like Alibaba and Tencent, Zhipu AI serves around 300,000 enterprise-level clients. On the consumer side, its GenAI app, Zhipu Qingyan, has gained popularity, with 300,000 AI agents performing various tasks since its launch. Zhipu AI's strategic investments and strong financial backing reinforce its prominent position in the AI industry.