Z.ai's coding assistant ZCode was discovered silently packaging and uploading developers' local workspace data to external cloud servers without authorization. A researcher found a 313MB encrypted archive that had attempted to upload 564 times to Alibaba's cloud storage.
Chinese AI firm Z.AI posted 400% revenue growth in the first half but missed sales estimates and continued to report losses, reflecting the costly battle among Chinese AI companies including Moonshot and Alibaba as they compete domestically and pressure Silicon Valley firms globally.
Z.ai (Zhipu AI) released GLM-5.3, a 743-billion-parameter open-weights AI model that the company claims is the most capable coding model available. The model reportedly discovered 2,436 vulnerabilities across 269 projects, including a serious flaw in the Cursor code editor and 1,097 critical bugs in Linux, WebKit, and FreeBSD.
Chinese AI models from companies like DeepSeek and Z.ai are gaining traction among U.S. companies, now representing over 30% of traffic on OpenRouter, as they cost significantly less than OpenAI and Anthropic while narrowing the performance gap.
Chinese AI startup Z.ai (formerly Zhipu AI) has released GLM-5.2, a 753-billion parameter open-weight language model that achieved the highest score (51) among open models on the Artificial Analysis Intelligence Index and reportedly outperforms GPT-5.5 on long-horizon coding benchmarks at one-sixth the cost. The model features a 1-million token context window and is available under MIT license on Hugging Face.
