Chinese AI models boasted of being good, pretty and cheap. There are only two of those three things

It is not as well known as its rivals, but Zhipu AI (z.ai) has become one of the most promising Chinese AI startups. It is responsible for the family of open GLM models that have always offered a solvent and, above all, very cheap alternative. That, unfortunately, is no longer so true, but we are witnessing a change in strategy both between it and its competitors in the Asian giant. Chinese AI models are no longer such a bargain.

GLM-5.1 is better… Z.ai announced yesterday the launch of its shiny new AI model, GLM-5.1. I did it with my chest out because we are facing a promising evolution of this LLM (744B parameters, 40B assets with Mixture of Experts architecture) that certainly surpasses its predecessors but that in some metrics even seems to be above GPT-5.4, Claude Opus 4.6 or Gemini 3.1. Agentic tasks and those that require autonomy for long periods work better than ever, but if you want to benefit from these improvements, you have to check out: the price of the model is now at least 8% more expensive than previous versions.

…but also more expensive. According to prices managed by OpenRouter, the well-known platform that serves as a “distributor” of multiple free and commercial models, the prices of the new Z.ai model have risen significantly. Thus, GLM-5.1 costs between 8 and 17% more than GLM-5 Turbo, also recently launched. It is the second time that the Chinese company has raised prices for its users in 2026, and that is a worrying sign. The excuse, of course, is the same as always.

We are in high demand. When Z.ai launched GLM-5 at the beginning of February, it took the opportunity to raise the prices of its plans for programmers between 30 and 60%while the API rose between 67% and 100% (doubling). Its shares on the stock market perked up significantly after the launch and the price increase – logical, investors saw that income was probably going to increase thanks to these increases – but the company indicated that demand was very high and that its models had to reflect that circumstance.

From the three B’s to just two. The Chinese open models had been demonstrating remarkable quality and a fantastic price/performance ratio for months. They were good, pretty and cheap, but Zhipu AI has just been the latest to end up raising prices. Most of its competitors have been doing it too: Moonshot AI (Kimi), MiniMax and StepFun did it already in 2025, but Alibaba, ByteDance, Tencent and Baidu have also adopted increasingly ambitious pricing strategies. as indicated on TrendForce.

OpenClaw as a trigger. Much of the blame for this great demand lies with AI agents like OpenClaw, which has become viral but has a problem: it consumes tokens at an extraordinary rate. A conversation with ChatGPT, Claude or Gemini has a cost, but the use of tokens in “chat mode” is much lower than that carried out by AI agents, who do not stop “thinking” and analyzing different possibilities and chaining processes to resolve our requests. The Chinese models have become a good alternative if one wants to save because using Claude Opus 4.6 was very expensive —and now, prohibited—, but these models are slowly becoming high-end AI models. At least, for price.

I already know how this story ends. What we are experiencing with AI models we already saw with smartphones. Chinese manufacturers broke the market with bargain phones that offered high-end features for mid-range or low-range prices, but then they evolved and over the years most manufacturers have ended up focusing on the super-high ranges and at most have launched “cheap” sub-brands. Xiaomi has done it with Redmi and POCO, for example, and now we are seeing something similar with Chinese AI startups, which gained popularity with good, pretty and cheap models, but are now beginning to transition to that new batch of capable but no longer so affordable models.

First they catch you, then they squeeze you. What we are seeing with the Chinese AI models we were also seeing with the models of companies like OpenAI or Anthropic. Both they and their competitors release increasingly better but also increasingly more expensive models, and that means that those tokens that these companies sell us are becoming more and more precious: the quotas for the ChatGPT Plus or Claude Pro plans, for example, seem to be running out. faster than beforeand the users they take time complaining about it. On Reddit They have a “megathread” dedicated precisely to that, but here we have bad news: this doesn’t look like it will go down, but rather more.

In Xataka | Anthropic has shut down OpenClaw for a reason: it’s building the “walled garden” that Nintendo perfected