Why do you think they made the cost so high? I guess it’s because they are confident it’s powerful enough compared to anything china and the world has (excluding Claude ). Plus they are still relatively cheaper than Claude frontier model, so I think they will be okay. At some point it won’t be sustainable to keep making all your frontier models open source for free. There will come a time where Chinese models will have to also start focusing on monetization.
zhipu just seems to be ahead of the curve in this aspect. Though I agree they should have made it a it less expensive to attract more users first and establish themselves like Claude did in enterprise environment.
All the US infra providers like fireworks.ai, deepinfra, novita, etc are charging the same rates
Z.ai priced it where they can all make some profit and comfortable margins and thus have incentive to host Glm5.2
If he priced it too low it would be a race to bottom where Z.ai cannot sustain all the demand
Plus they want quality data to feed their flywheel.. so its a self selection filtering mechanisn as well...
With the USG capping Fable from above and Chinese openweights catching up from below... the US basically lost the AI race to China