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Economic Times Tech
Economic Times Tech
7/2/2026
A new, inexpensive Chinese AI model is catching up with Anthropic, OpenAI on their home turf

A new, inexpensive Chinese AI model is catching up with Anthropic, OpenAI on their home turf

Short summary

Z.ai's GLM-5.2 emerges as a cost-competitive AI model rivaling OpenAI and Anthropic, prompting Western startups to explore cheaper alternatives in what's being called the 'mini DeepSeek moment.' The model performs strongly on coding tasks with significantly lower pricing. However, US enterprises in regulated industries remain hesitant due to data security concerns with Chinese AI systems.

  • Z.ai's GLM-5.2 offers cost-competitive performance vs. Anthropic/OpenAI
  • Strong coding capabilities attracting Western startups
  • US regulated industries remain cautious over data security with Chinese AI

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