American AI coding agents are impressive. But so are China’s

A new AI model from China, Zhipu AI's GLM 4.7, is capturing the attention of developers in the United States, a surprising turn given the prevailing sentiment about using Chinese technology. This model has seen such high demand that Zhipu has announced it will start limiting access. Zhipu's coding tool is emerging in the wake of the significant impact made by DeepSeek's R1 model in the U.S. last year. AI experts note a growing presence of Chinese AI models globally, and Zhipu is no exception. Upon reaching out to the company, I was pleasantly surprised by their quick response. Their investor relations team revealed that their user base is largely concentrated in both the U.S. and China. Despite a historical skepticism among American developers toward Chinese models, Zhipu's increasing popularity suggests that a breakthrough similar to DeepSeek's could be on the horizon. Recently, the rapid app creation capabilities demonstrated by Replit and Claude Code showcased the cutting edge of American innovation, leading to a notable 60% increase in new app releases. However, the question arises: if Zhipu's model is as effective and user-friendly as its American counterparts, do they really lag behind as suggested by industry leaders like Google DeepMind's Demis Hassabis? Additionally, the affordability and open-source nature of Chinese AI tools could challenge the competitive edge traditionally held by U.S. developers. In an intriguing test, CNBC's Deirdre Bosa and I decided to experiment with Zhipu to see if it lived up to the hype. We requested the model to create a tracker for major public companies in China. Zhipu delivered a functional app faster than its U.S. rivals, though the presentation of its results fell short of polish compared to American standards. To gauge Zhipu's authenticity, we consulted industry insiders familiar with AI developments. It became evident that GLM 4.7 is indeed gaining recognition within the U.S. marketplace, albeit with mixed reviews. Tuhin Srivastava of Baseten, a platform that supports AI applications and observes real-world usage, confirmed this trend, especially following Baseten's new funding round that included participation from Nvidia. For a deeper analysis, tune into the livestream with Srivastava and Bosa, scheduled for Monday at 2:30 PM ET.