Z.ai, a leading Chinese AI startup formerly known as Zhipu, has introduced GLM-4.5, a powerful open-source AI model designed to compete directly with DeepSeek. Announced at the 2025 World Artificial Intelligence Conference in Shanghai, GLM-4.5 is built on agentic AI principles and is capable of decomposing complex tasks, positioning it as a rival not just in cost but also in functionality. Z.ai claims it operates at half the token cost of DeepSeek, offering developers an efficient and scalable alternative.

The move reflects China's growing ambition in the open-source AI space and signals a cost war in the AI model ecosystem.