BusinessModels

Coinbase and others switch to Chinese AI models—pricing pressure on Western labs

Coinbase has shifted its AI infrastructure to cheaper Chinese models like GLM 5.2 and Kimi 2.7, halving its AI spending while token usage rises.

In detail

  • Coinbase now uses Chinese models instead of OpenAI/Anthropic; 91% of developers no longer exceed their old usage limits.
  • Automatic routing system selects the best model per request based on task, price, and caching potential; caching optimization raised hit rate from 5 to 60%.
  • Lindy CEO and Snowflake also testing Chinese models; OpenAI and Anthropic face pricing pressure—OpenAI offers GPT-5.6-Sol with better token efficiency.
  • Coinbase ties spending to expected business impact: 'The more you spend on AI, the more impact we expect.'

Why it matters

Established companies switching to Chinese models signals a market inflection: cost optimization becomes a competitive lever, and Western labs must rethink pricing. For SMEs, this means concrete alternatives to expensive US APIs.

For you Compare total cost of ownership (token price + caching efficiency) of DeepSeek, Kimi, and GLM against your current OpenAI/Anthropic spend—savings could be substantial.

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