Zhipu releases GLM-5 AI model, intensifying race with DeepSeek ahead of Lunar New Year

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Chinese AI startup Zhipu has launched GLM-5, its new flagship model with enhanced coding capabilities that rivals Anthropic's Claude Opus. The release comes as Chinese tech companies accelerate AI model development ahead of the Lunar New Year, with industry watchers anticipating DeepSeek's next-generation architecture. Zhipu's stock has surged over 50% this week as competition heats up among China's AI tigers.

Zhipu Accelerates Chinese AI Race with GLM-5 Launch

Zhipu has officially released GLM-5, its new flagship model designed to tackle complex coding and long-running agent tasks, marking a significant escalation in the Chinese AI competition

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. The open-source large language model has been measured directly against Anthropic's Claude Opus series, with the company claiming it approaches Claude Opus 4.5 in coding benchmark tests and surpasses Google's Gemini 3 Pro on some benchmarks

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. The Beijing-based company rolled out the model early Thursday, featuring more than double the number of parameters compared to its predecessor

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Source: ET

Source: ET

The timing of this release reflects the intensifying competition among Chinese tech companies racing to unveil sophisticated AI models ahead of the Lunar New Year festival. Zhipu joins peers including Moonshot AI, ByteDance, and MiniMax in this pre-holiday sprint, with the industry anticipating DeepSeek to release its next-generation architecture during the holiday period—a move likely to set a new benchmark for Chinese open-source models

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. ByteDance recently released Seedance 2.0, a video generation model that drew widespread attention for creating sophisticated videos, while rival Kuaishou launched its Kling 3.0 video generation model days earlier

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Enhanced Coding Capabilities Drive AI Model Development

The GLM-5 positions itself with enhanced coding capabilities and the ability to perform multi-step tasks, optimized for working with AI agents such as OpenClaw

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. This focus on agentic capabilities represents a strategic positioning as the company competes globally against established players like Anthropic, whose Claude Code service remains unavailable in China. Zhipu sells subscriptions to its GLM Coding Plan as a direct alternative

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Source: Bloomberg

Source: Bloomberg

The latest model was developed using domestically manufactured chips for inference, including Huawei's flagship Ascend chip and products from leading industry players such as Moore Threads, Cambricon, and Kunlunxin

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. This showcases Beijing's push for chip self-sufficiency as the U.S. tightens export curbs on high-end semiconductors, encouraging domestic firms to rely on less advanced Chinese chips for training and inference.

Market Response and Strategic Positioning Among AI Tigers

Zhipu, considered one of China's AI tigers—a group of promising AI startups vying with the United States to lead frontier technology development—has seen its stock surge more than 50% this week after JPMorgan initiated coverage and GLM-5 was first launched in stealth mode over the weekend

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. The company went public on the Hong Kong Stock Exchange last month alongside rival MiniMax, with both stocks rallying strongly as investors bet on benefiting from China's AI boom

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Source: Reuters

Source: Reuters

Valued at roughly $18 billion, Zhipu stands as the first major global LLM builder to list on a stock market

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. Founded in 2019 by Tsinghua University researchers with backing from government funds and early investment from Alibaba Group Holding Ltd. and Tencent Holdings Ltd., the company is now transitioning from building customized AI solutions for business clients in China to offering its AI to global users

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. Chief Executive Zhang Peng told Reuters that overseas revenue was beginning to gain traction, though the company has yet to directly compete with U.S. models in consumer subscriptions

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In an internal memo after Zhipu's initial public offering, co-founder and chief AI scientist Tang Jie emphasized the need to return to fundamental research, writing "DeepSeek was a wake-up call"

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. The GLM-5 release follows a rapid series of updates, including version 4.7 last month and version 4.6 in September, demonstrating the accelerated pace of AI model development as Chinese companies work to catch up with their U.S. rivals

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. Markets have shown elevated sensitivity to new artificial intelligence releases that threaten established businesses, impacting sectors from legal and compliance software to video games

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