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Time of India
2 days ago
- Business
- Time of India
This Chinese company included in US restricted entity list announces ChatGPT's newest rival that claims to be cheaper than DeepSeek
Chinese startup has announced its newest artificial intelligence model, GLM-4.5. The company claims that its latest AI model will be cheaper to use than DeepSeek . This new model shows how Chinese companies are creating more capable AI models at reduced costs. previously known as Zhipu, has confirmed that GLM-4.5 is built on "agentic" AI principles. This means the model can automatically decompose a task into sub-tasks to complete it with greater accuracy, which is a different approach from the logic of some existing AI models. In June, OpenAI included Zhipu in a warning list regarding advancements in Chinese AI. The US government has also placed the startup on its restricted entity list, limiting American firms from engaging in business with it. The new GLM-4.5 model is also open-sourced, which will allow developers to download and use it for free. What said about its AI model GLM-4.5 being cheaper than DeepSeek In a statement to CNBC, Zhang Peng , the CEO of said the company's new GLM-4.5 model runs on eight Nvidia H20 chips . These are Nvidia's AI training chips that are specifically designed for the Chinese market to comply with US export rules. While Nvidia recently received approval to resume shipments to China after a pause, the timeline for delivery remains unclear. Zhang noted that has adequate computing resources and does not need to purchase additional chips for now, but declined to disclose how much was spent on training the model, saying more information would be shared later. said it will price GLM-4.5 at 11 cents per million input tokens and 28 cents per million output tokens, compared to DeepSeek R1's rates of 14 cents and $2.19, respectively. These tokens are used to measure the volume of data processed by AI models. In recent weeks, several Chinese firms have introduced new open-source AI models . At the World AI Conference in Shanghai, Tencent unveiled its HunyuanWorld-1.0 model, designed to help generate 3D scenes for game development. Alibaba followed with the launch of its Qwen3-Coder model, focused on coding tasks. Earlier this month, Moonshot, which Alibaba backs, announced Kimi K2, which it said performs better than OpenAI's ChatGPT and Anthropic's Claude in specific coding tasks. According to the company's website, Kimi K2 charges 15 cents per million input tokens and $2.50 per million output tokens. Back in January, DeepSeek drew attention from global investors with its AI model, which it said was developed despite US chip restrictions and came with lower training and operating costs than its US counterparts. The company claimed its V3 model was trained for under $6 million, though some analysts noted that figure reflects part of its total hardware investment, which exceeded $500 million. iQOO Z10R 5G goes on Sale: BEST Budget Phone for Content Creators?
Business Insider
2 days ago
- Business
- Business Insider
China's Newest AI Model Is Cheaper than DeepSeek
Chinese tech startups are following in DeepSeek's footsteps by releasing new artificial intelligence models that are smarter and cheaper, according to CNBC. One of the most notable is formerly known as Zhipu, which on Monday revealed its GLM-4.5 model. The company says that this model costs less to use than DeepSeek's and works with agentic AI, which is a system that breaks large tasks into smaller steps for more accurate results. Z. ai is also making the model open-source so developers can freely download and use it. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. What's interesting is that GLM-4.5 is roughly half the size of DeepSeek's competing model and requires only eight Nvidia (NVDA) H20 chips to run. For context, these are the specialized chips made for China to comply with U.S. export controls. CEO Zhang Peng told CNBC that the company already has enough computing power and does not need to buy more chips, although he declined to disclose the model's training costs. Nevertheless, stated that it will charge $0.11 per million input tokens and $0.28 per million output tokens, which is significantly cheaper than DeepSeek's rates of $0.14 and $2.19, respectively. It is worth noting that release adds to a wave of new open-source AI models from China. Indeed, earlier this month, Alibaba-backed Moonshot (BABA) introduced its Kimi K2 model that it claimed was better at coding than OpenAI's ChatGPT and Anthropic's Claude. Tencent (TCEHY) also released its HunyuanWorld-1.0 model for 3D game development, and Alibaba announced Qwen3-Coder for programming tasks. In addition, has raised more than $1.5 billion from investors, which has led U.S. regulators to add the startup to their Entity List that limits American companies from working with it. Which Tech Stock Is the Better Buy? Turning to Wall Street, out of the three stocks mentioned above, analysts think that BABA stock has the most room to run. In fact, BABA's average price target of $151.08 per share implies more than 23% upside potential. On the other hand, analysts expect the least from of $184.91 equates to a gain of 5.6%.
AllAfrica
2 days ago
- Science
- AllAfrica
China's AI leap elevating stealth fighter ambitions
The South China Morning Post (SCMP) has reported that Chinese scientists have developed advanced aircraft-design software they claim breaks the 'curse of dimensionality,' a computational barrier that contributed to the US Navy's cancellation of its X-47B stealth drone program in 2015. Led by Huang Jiangtao at the China Aerodynamics Research and Development Center, the team introduced a geometric sensitivity computation method that enables optimization of hundreds of variables—such as stealth, aerodynamics and propulsion—without increasing computational load. Unlike traditional methods that grow exponentially more complex, their approach decouples gradient computation costs from design intricacy and integrates radar-absorbent materials directly into aerodynamic sensitivity equations. Their paper, published in Acta Aeronautica et Astronautica Sinica, demonstrated dramatic improvements using the X-47B as a case study. The researchers say this breakthrough could provide critical technical support for next-generation low-observable aircraft, including China's J-36 and J-50 fighters and stealth drones. As sixth-generation fighter programs worldwide face delays or cancellations, China's approach—emphasizing algorithmic efficiency over raw computing power—may save time and resources in stealth warplane development. The SCMP has also previously reported that China's Shenyang Aircraft Design Institute is using the DeepSeek AI platform to tackle complex engineering challenges and reduce time spent on technical reviews, freeing researchers to focus on core innovation tasks. Lead designer Wang Yongqing has stated that the technology is already generating new ideas and approaches for aerospace development, and confirmed steady progress on new variants of the multi-role J-35 stealth fighter. This progress may be underpinned by China's development of increasingly capable AI models. Nature reported this month that Moonshot AI's Kimi K2, an open-weight agentic large language model, matches or surpasses Western and DeepSeek models. The report indicates that Kimi K2 appears to excel in coding, scoring high in tests such as LiveCodeBench. According to Nature, unlike traditional 'reasoner' models, Kimi K2 is designed to execute complex multi-step actions using external tools autonomously, and its accessibility via API at low cost has spurred rapid adoption on platforms like Hugging Face. However, in an April 2025 ChinaTalk article, Lennart Heim noted that while Chinese AI models are likely to match US counterparts in performance, the latter retains a decisive edge in computing capacity, driven by more advanced AI chips and superior system integration at scale. Moreover, Gregory Allen, in a March 2025 report for the Center for Strategic and International Studies (CSIS) think tank, stated that DeepSeek trained its V3 model using 2.8 million graphics processing unit (GPU) hours on Nvidia H800 chips—export-compliant processors specifically designed to comply with the US's October 2022 chip controls. Allen noted that although DeepSeek's publications claimed exclusive use of H800s, reporting from SemiAnalysis and Chinese media—cited in the report—alleged that DeepSeek's R1 model may have been trained using banned Nvidia H100 chips. He reported that SemiAnalysis estimated DeepSeek's parent company, High-Flyer Capital, had acquired 50,000 Hopper-generation GPUs, including 10,000 H100s, 10,000 H800s, and 30,000 H20s. Allen further observed that Nvidia's A800 and H800 chips initially skirted US export controls until regulatory updates in October 2023 closed those loopholes. In addition to relying on US AI chips, China depends on US Electronic Design Automation (EDA) software for chip development. Reuters reported that the US has lifted export controls on EDA software, coinciding with China's relaxation of rare-earth export restrictions. Despite efforts toward indigenous advanced AI chip production—particularly Extreme Ultraviolet (EUV) lithography machines—the Hunan Printed Circuit Association noted this month that China remains at an early developmental stage, encountering significant issues with throughput, durability, and integration into existing ecosystems. These chip-related limitations may have sharp implications for the development of strategic Chinese platforms, notably the H-20 stealth bomber. According to the 2024 US Department of Defense (DoD) China Military Power Report (CMPR), the H-20 is a critical next-generation long-range bomber designed to bolster China's nuclear triad and extend military reach beyond the Second Island Chain. The report states that the H-20, based on a flying-wing design similar to the US B-2, is expected to surpass an 8,500-kilometer range and carry conventional and nuclear payloads, giving China its first true strategic bomber and global strike capability. It notes that the H-20 has yet to be revealed or flight-tested and may only enter service by the 2030s. In contrast to the H-20, General Thomas Bussiere, head of US Air Force Global Strike Command, stated in an interview this month with Air & Space Forces Magazine, that a second developmental B-21 bomber 'should fly shortly,' following the first unit's initial November 2023 flight. The magazine reports that production acceleration was enabled by Congressional approval of a $4.5 billion increase through a reconciliation bill, which Bussiere described as expected and based on over a year of analysis regarding capability, cost, and ramp-rate potential. Bussiere told the publication that this expansion reflects a growing recognition of the strategic value of long-range strike, particularly amid the challenge of sustaining aging Cold War-era bombers and an increasingly volatile global environment. While the official production goal remains 'more than 100' B-21 bombers, the article notes that Bussiere informed the Senate Armed Services Committee he supports assessing an increase to 145 aircraft, citing strategic shifts such as Russia's invasion of Ukraine and China's expanding strategic forces. Air & Space Forces Magazine adds that General Anthony Cotton, head of US Strategic Command, also advocates for raising the total to 145 aircraft. Highlighting the role of AI in accelerating B-21 development, Newsweek reported in December 2023 that AI optimized digital design and engineering processes, including simulation-based testing before physical construction. According to the report, AI-driven tools have enabled Northrop Grumman to maintain tight schedules, enhance sustainability, and optimize supply chains. It also notes that the B-21 incorporates open-architecture software, facilitating rapid upgrades and AI-driven mission flexibility, transforming it into a stealthy sensor and data fusion node beyond its bomber role. Despite these advantages, the US faces significant challenges scaling B-21 production. In a June 2025 report for the Heritage Foundation, Shawn Barnes and Robert Peters noted that the US relies solely on a single B-21 production facility in Palmdale, California, which limits output to about ten bombers per year—insufficient to reach the US Air Force's 100-aircraft goal before the late 2030s. They highlighted the high up-front development costs of the program, the fragility of the defense industrial base and the single-point-of-failure risk associated with relying on one site. Barnes and Peters argued that establishing a second production line is essential to scale capacity, reduce risk, and potentially support future sales to close allies, as was done with the F-35. AI-driven breakthroughs are clearly reshaping stealth aircraft development, but progress for both China and the US hinges critically on overcoming chip dependencies and scaling production capacities. The outcome of this high-stakes technological competition will shape the future balance of strategic airpower.
CNBC
3 days ago
- Business
- CNBC
China's latest AI model claims to be even cheaper to use than DeepSeek
BEIJING — Chinese companies are making smarter artificial intelligence models that are increasingly cheaper to use, echoing key aspects of DeepSeek's market-shaking breakthrough. Startup formerly known as Zhipu, announced Monday that its new GLM-4.5 AI model would cost less than DeepSeek to use. In contrast to the logic underlying existing AI models, said its new GLM-4.5 is built on what's known as "agentic" AI, meaning that the model automatically breaks down a task into sub-tasks in order to complete it more accurately. The new model is also open sourced, meaning it is free for developers to download and use. At about half the size of DeepSeek's model, GLM-4.5 only needs eight Nvidia H20 chips to operate, CEO Zhang Peng told CNBC on Monday. That's the chip Nvidia customized for China in order to comply with U.S. export controls. The chipmaker said this month that the U.S. will allow it to resume those China sales after a three-month pause, but it's unclear when those shipments will begin. Zhang said the company doesn't need to buy more of the chips as it has enough computing power for now, but declined to share how much spent on training the AI model. Details will be released later, he said. Back in January, DeepSeek had rattled global investors with its apparent ability to defy U.S. chip restrictions and create an AI model that not only rivaled U.S.-based OpenAI's ChatGPT, but also undercut it in training and operating costs. DeepSeek claimed training costs for its V3 model were less than $6 million, although some analysts said that figure was based on the company's hardware spend of more than $500 million over time. said that for its new GLM-4.5 model, it would charge 11 cents per million input tokens versus 14 for DeepSeek R1; and 28 cents per million output tokens versus $2.19 for DeepSeek. Tokens are a way of measuring data for AI model processing. Earlier this month, Alibaba-backed Moonshot released Kimi K2, which claimed to beat OpenAI's ChatGPT and Anthropic's Claude on certain coding capabilities. Kimi K2 charges 15 cents for every 1 million input tokens, and $2.50 per 1 million output tokens, according to its website. In late June, OpenAI named Zhipu in a warning about Chinese AI progress. The U.S. has also added the startup to its entity list that restricts American companies from doing business with it. launched in 2019 and is reportedly planning an initial public offering in Greater China. The startup has raised more than $1.5 billion from investors including Alibaba, Tencent and Qiming Venture Partners, according to PitchBook. Aramco-backed Prosperity7 Ventures as well as municipal funds from the cities of Hangzhou and Chengdu are also among backers, the database showed. In the last few weeks, several other Chinese companies have announced new, open-source AI models. During the World AI Conference in Shanghai, Tencent released the HunyuanWorld-1.0 model for generating three-dimensional scenes for game development. Last week, Alibaba announced its Qwen3-Coder model for writing computer code.
Mint
3 days ago
- Business
- Mint
Zhipu challenges OpenAI with upcoming GLM-4.5 open-source model, launch likely next week
Zhipu, a Chinese artificial intelligence firm now rebranded as is reportedly preparing to launch the latest version of its open-source language model, GLM-4.5, early next week. The move places it among a rising number of Chinese tech companies accelerating their efforts to make advanced AI models freely accessible. According to a Bloomberg report, the release of the LLM model is expected as soon as Monday. GLM-4.5 will serve as an upgrade to the firm's existing flagship model, as Zhipu attempts to position itself as a serious contender in the global AI landscape. The company has not responded to media enquiries regarding the release timeline or technical details of the new model. Zhipu's move reflects a broader trend in China's AI sector, where multiple firms are pivoting towards open-source strategies. Moonshot recently unveiled its Kimi K2 model to the public, while StepFun released a non-proprietary version of its own reasoning system. The open-source approach is increasingly seen as a method to drive adoption and influence global AI standards, especially as Western competitors like OpenAI and Anthropic continue to expand. Separately, the Chinese tech giant is reportedly re-evaluating its listing strategy. Bloomberg News reported earlier this month that the firm is considering moving its planned initial public offering from mainland China to Hong Kong. The potential shift, if executed, could raise up to $300 million and is said to be in collaboration with financial advisers. Zhipu counts Chinese tech giants Alibaba and Tencent among its investors. The announcement of GLM-4.5 follows a period of intensified activity among Chinese AI startups, many of which are seeking both market visibility and credibility in a sector dominated by American firms. The release of more powerful and accessible models is likely to add momentum to the competition, both within China and internationally. (With inputs from Bloomberg)
