China’s Zhipu AI disrupts generative coding with ultra-cheap, high-performance GLM-4.7.

China's GLM-4.7 shifts the AI battlefield, pairing advanced agentic coding with a dramatically aggressive, sub-industry price structure.

December 23, 2025

China’s Zhipu AI disrupts generative coding with ultra-cheap, high-performance GLM-4.7.
The global artificial intelligence race has reached a new inflection point as Zhipu AI, one of China's most prominent and state-backed generative AI companies, launched its flagship model, GLM-4.7, challenging the supremacy of Western rivals with a distinct focus on low-cost, high-performance autonomous programming. The model is engineered to be a powerful yet economical tool for developers, leveraging technical innovations and aggressive pricing to disrupt the highly competitive market for AI-driven software development. Its introduction represents a significant stride in China’s ambition to establish a globally competitive and self-reliant AI ecosystem, shifting the battlefield from raw model size to the efficiency and cost-to-performance ratio for real-world tasks.
The technical core of the GLM-4.7 model is defined by its specialization in complex, multi-step agentic coding, built upon a Mixture-of-Experts architecture. At the heart of this capability is an advanced reasoning technique called "Preserved Thinking." This feature allows the model to retain and carry forward its chain of reasoning across extremely long and multi-turn conversations, a crucial function for complex software projects where context must be maintained over hundreds of interactions. It works in conjunction with a refined "Interleaved Thinking" mechanism, which mandates the model to pause, reflect, and plan before executing any action or tool call, dramatically improving the stability and compliance of its responses in agent workflows. With a context window supporting up to 205,000 tokens, the model can ingest entire codebases, documentation, or large-scale project requirements in a single prompt, overcoming a major bottleneck faced by developers using earlier large language models. The combination of technical prowess and long-context processing is specifically designed to minimize the errors and 'amnesia' often seen in AI agents during protracted problem-solving sessions.
Zhipu AI has not shied away from directly positioning the GLM-4.7 as a superior or equivalent competitor to models from Western pioneers like OpenAI and Anthropic, particularly in the domain of code generation and technical reasoning. The company's internal benchmarks indicate that the new model has achieved state-of-the-art results among open-source and certain closed models in critical coding evaluations. For instance, the GLM-4.7 reportedly scored 73.8 percent on the rigorous SWE-bench Verified test, which measures an AI’s ability to autonomously resolve real-world software issues. On multilingual coding proficiency, it saw a massive 12.9 percentage-point jump on the SWE-bench Multilingual benchmark over its predecessor, signaling a strong performance in mixed-language development environments. Furthermore, in challenging reasoning tasks like the AIME 2025 math competition and the Humanity's Last Exam (HLE) benchmark, the model claimed to have outperformed major commercial models like Anthropic's Claude 4.5 Sonnet and certain versions of OpenAI’s GPT-5 series[1][2][3]. Beyond pure functional coding, Zhipu AI highlighted its capability in "vibe coding"—generating aesthetically pleasing and high-quality web pages, slides, and presentations from simple prompts, an upgrade aimed at reducing the time developers spend on front-end fine-tuning[4][5].
The most potent aspect of the GLM-4.7 release, and the core of its challenge to the West, is its aggressive pricing structure. Zhipu AI has priced its flagship model dramatically lower than many of its Western counterparts. The model is offered via API at a cost of $0.60 per million input tokens and $2.20 per million output tokens. To further attract developers, the company also launched a dedicated "GLM Coding Plan" starting at a monthly subscription of just a few dollars for direct integration into popular coding agent frameworks. This price point stands in stark contrast to the token pricing of high-tier Western models. For example, Anthropic’s Claude 3.5 Sonnet—a model Zhipu explicitly targets in performance benchmarks—is priced at $3.00 per million input tokens and $15.00 per million output tokens, making GLM-4.7 approximately one-fifth the cost on input and nearly one-seventh the cost on output[6][7]. While models like Google’s Gemini 3 Flash offer competitive input pricing at $0.50 per million tokens, GLM-4.7 undercuts its output price of $3.00 per million[8][9]. The substantial cost differential directly addresses one of the primary friction points for developers and enterprises leveraging AI at scale: the recurring, high cost of API calls. This aggressive strategy substantiates the company’s claim of being a cost-effective alternative and is intended to accelerate adoption in developing economies and cost-sensitive enterprise sectors[6][9][7][4][5].
The launch of GLM-4.7 is more than just a product release; it is a strategic move in a growing geopolitical contest for AI dominance. Zhipu AI has been publicly recognized by OpenAI as a formidable global rival, one that is actively working to challenge U.S. technological leadership[8][9][7]. Backed by significant state investment, the company's aggressive global expansion aligns with China's "Digital Silk Road" initiative, which seeks to export Chinese-developed AI frameworks and infrastructure to emerging markets across Southeast Asia, the Middle East, and Africa[8][9][10]. By providing high-performance, low-cost alternatives, Zhipu aims to lock Chinese systems and standards into these regions before American or European competitors can dominate[9][10]. The company’s resilience is notable, particularly after it was added to the U.S. Entity List, which restricts its access to U.S. technology like certain semiconductor tools and cloud platforms[10]. This measure has not halted its progress but rather accelerated its pivot to establishing a more self-reliant, non-U.S. supply chain and has fueled the narrative of providing a "digital sovereignty" alternative to U.S.-led technology[10]. The GLM-4.7, with its open-source components and accessible pricing, is now a spearhead in this broader international strategy.
In conclusion, Zhipu AI's GLM-4.7 is a definitive statement that the next phase of the AI race will be fought on the basis of economic efficiency and specialized utility, not just raw performance metrics. By pairing advanced, context-retaining autonomous programming capabilities with an aggressive, sub-industry standard price model, the Chinese firm is effectively commoditizing high-end AI services for developers. This low-cost entry point and performance edge in critical technical domains present a palpable threat to the revenue models of Western frontier AI companies, forcing them to re-evaluate their pricing and focus on maximizing efficiency. The release solidifies Zhipu AI’s position as a key global player and intensifies the technological and geopolitical competition between the US and China in defining the standards and infrastructure of the AI future.

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