Chinese artificial intelligence company Zhipu has implemented a significant price increase for its GLM coding subscription service, raising rates by a minimum of 30% effective immediately. The move follows the company's launch of its latest open-source model, GLM-5, which occurred just before the Spring Festival holiday period.
The price adjustment applies only to new subscribers, with existing customers unaffected according to a company announcement. Zhipu's Hong Kong-listed shares responded positively to the developments, jumping 30% in Thursday trading following the model's debut.
This activity coincides with heightened government focus on AI commercialization. Premier Li Qiang recently emphasized the need for broader commercial deployment of artificial intelligence technologies, specifically calling for improved coordination of power and computing resources to support scaled implementation.
The competitive landscape remains intense, with multiple Chinese AI companies rushing new releases to market. Industry observers note that while operating costs for Chinese AI models are estimated at one-sixth to one-fourth of comparable U.S. systems, pressure remains to deliver technically impressive models that can generate sustainable subscription revenue.
Zhipu's GLM-5 model features enhanced coding capabilities and can handle extended multi-step tasks with minimal prompting. The company claims benchmark performance approaching leading international models from Anthropic and Google. Notably, the model runs on domestic hardware including Huawei's Ascend chips, reflecting adaptation to U.S. semiconductor restrictions.
Rival firm MiniMax also announced its own M2.5 open-source model release through overseas channels. Both companies completed Hong Kong listings last month, with Zhipu expressing ambitions for global expansion despite ongoing geopolitical challenges.
Market attention now shifts to whether these technical advancements translate into commercial success. Investors are watching for concrete contracts and revenue growth rather than promotional benchmarks, particularly as price competition intensifies in the AI assistant market.
