China's AI Giants Shift Strategy as Zhipu Leads Price Surge
China's AI Market Enters New Phase with Zhipu's Pricing Shift
The artificial intelligence sector in China is witnessing a pivotal moment as Zhipu AI becomes the first major player to implement substantial price increases for its flagship GLM-5 model. Effective February 12, 2026, these adjustments reveal stark differences between domestic and international markets.
Pricing Changes Reveal Market Priorities
Zhipu's new pricing structure shows clear geographical preferences:
- Domestic users face a 30% increase for coding packages
- International clients bear heavier burdens with 60% higher subscription fees and API costs potentially doubling
The company has offered existing customers temporary relief through grandfathering clauses, but new contracts will reflect these steeper rates immediately.
Behind the Numbers: Why Prices Are Rising
Market analysts point to several converging factors driving this strategic shift:
- Exploding demand: Developer adoption has outpaced infrastructure growth
- Computing costs: Maintaining service quality requires massive hardware investments
- Commercial maturity: The industry appears ready to move beyond loss-leading pricing strategies
"We're seeing the natural evolution of any tech sector," notes Li Wei, senior analyst at TechInsight China. "After years of subsidized growth, companies need to demonstrate real profitability."
Industry Reactions and Future Outlook
The pricing move has created ripples across China's competitive AI landscape:
| Company | Current Pricing Strategy |
|---|
Financial analysts suggest this could mark the beginning of industry-wide adjustments as competitors reassess their own pricing structures.
Key Points:
- Zhipu initiates first major 2026 price hike among Chinese AI firms
- International customers face significantly steeper increases than domestic users
- Move reflects growing pressure to monetize AI services sustainably
- Industry watchers expect competitors to follow suit gradually
