Free AI agent from China: Zhipu AI challenges global tech giants

Zhipu AI launches AutoGLM Rumination, a powerful, free AI assistant that could fundamentally change the pricing landscape in the Chinese AI sector.

The startup Zhipu AI, founded by the renowned Tsinghua University, presented its free AI agent “AutoGLM Rumination” on March 31, 2025. This is based on the proprietary GLM-Z1-Air and GLM-4-Air-0414 models and can perform complex tasks such as web searches, travel planning and creating research reports. In direct comparison with paid competitor products such as Manus AI (USD 199/month) and DeepSeek’s R1 model, Zhipu is positioning itself as a disruptive force in the fast-growing Chinese AI market with its free offering.

The technical performance data of AutoGLM is impressive: according to the company, GLM-Z1-Air works eight times faster than DeepSeek’s R1 and requires only one-thirtieth of the computing resources with comparable functionality. In addition, the base model GLM-4 is even said to outperform OpenAI’s GPT-4 in certain benchmark tests.

Government support as a strategic advantage

The free access to AutoGLM Rumination via website and app is in clear contrast to the subscription model of competitors such as Manus. This strategy is made possible by extensive government funding: in March 2025 alone, Zhipu AI received 300 million yuan (around USD 41.5 million) from the city of Chengdu – just one of three consecutive rounds of government funding that month.

The free provision of advanced AI technology fits in with China’s strategy to lead global AI development. Analysts suspect that this pricing policy could put pressure on other providers to adapt their own business models. AutoGLM’s low computing and resource requirements make it particularly attractive for scalable enterprise applications.

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The most important facts about the AI agent

  • AutoGLM Rumination is completely free, unlike competitors that charge up to $199 per month
  • The underlying model GLM-Z1-Air works 8 times faster than comparable competing products
  • Efficiency is achieved through 30 times lower resource consumption with equivalent performance
  • Zhipu AI received 300 million yuan (USD 41.5 million) in government funding from Chengdu
  • According to the manufacturer, the basic GLM-4 model outperforms OpenAI’s GPT-4 in selected benchmarks
  • Market launch comes shortly after DeepSeek’s low-cost model and shortly before Baidu’s ERNIE X1

The combination of government support, university expertise and strategic pricing policy illustrates China’s ambition to become a leader in the global AI market through innovative public-private partnerships.

Source: Reuters