The 24th annual Forbes Global 2000 records highs in sales, profits, assets and market value. But there is one number that stands out from the rest.

The combined market value of 2,000 of the world’s largest public companies jumped 31.8% this year, adding more than $30 trillion (approximately €27.8 trillion) in shareholder value in the last twelve months.

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Combined sales reached $56 trillion (approximately €51.9 trillion), up 6%. Profits climbed 13.9% to $5.5 trillion (approximately €5.1 trillion). Assets grew 12.9% to $272 trillion (approximately €252 trillion). However, none of these figures explains what actually happened at the level of the market.

The biggest change occurred in markets related to technology. Hardware, semiconductor, and software firms now account for 209 companies on the list, up from 186 last year. Their combined market value has nearly doubled from $23.9 trillion (approximately €22.2 trillion) to $41.4 trillion (approximately €38.4 trillion). That single cohort accounts for 57% of the entire list’s market value increase from last year. The driver appears to be the market’s appetite for anything AI-related.

The market has not been fully welcomed. Some still fear the threat of a bubble. Others see a market that still has room to run its course.

Richard Attias, chairman of the non-profit Future Investment Institute, ahead of the Forbes Iconoclast Summit in New York earlier this month, said: “AI will have an impact everywhere.”

The Chip Cycle

Nvidia climbed 20 places to No. 27 and became the most valuable chip company on the list. South Korea’s SK Hynix, whose high-bandwidth memory chips are essential to AI servers, jumped 107 places to No. 48. Alphabet, one of the largest AI hyperscalers, rose five places to No. 4. CoreWeave, the AI cloud computing firm that joined the list last year, climbed 706 places to No. 1,093.

A similar trend could be seen in the hardware space. Taiwan’s Hon Hai Precision, the iPhone assembler and AI server manufacturer better known as Foxconn, climbed 55 places to No. 82. SanDisk, the California flash-storage company, entered at No. 614 after ranking outside the top 2,000 last year.

The Physical Side Of The Trade

It is not only code and cloud that saw growth, however. The materials industry also gained from the harder edge of the chip cycle. Materials companies on the Global 2000 rose 67.5% in market value and grew profits by 38.6%, as investment interest rewarded producers of copper, cobalt, lithium and the chemicals feeding semiconductors, advanced manufacturing, power systems and data centres.

British-Australian mining giant Rio Tinto climbed 24 places to No. 111 after landing a two-year collaboration with Amazon Web Services to supply copper made with its Nuton bioleaching technology to AWS’s US data centres. Nucor, the steel manufacturer, rose 84 places to No. 416 on the back of data centre demand for its pre-engineered, plug-and-play steel products, the racks that hold the servers.

The Banks Still Hold Their Own

Even with AI dominating this year’s headlines, the top of the ranking still belongs to those who are in charge of the balance sheets. JPMorganChase, for instance, holds onto its No. 1 spot for the fourth year in a row, with $4.9 trillion (approximately €4.5 trillion) in assets.

There are 314 banks on this year’s list, more than any other industry, holding $140.4 trillion (approximately €130 trillion) in combined assets. That is more than half of the total for all 2,000 companies.

Another 136 diversified financial firms made the cut, alongside 113 insurers.

Banks and insurers are responsible for enormous balance sheets by design, while technology firms tend to be lighter on assets and therefore receive less credit on that metric. Elevated interest rates helped, too, allowing banks, insurers and other lenders to earn higher profits on loans and fixed-income assets.

The rest of the top 10 show a little more diversity. Amazon takes second place on $742.8 billion (approximately €688 billion) in sales and a $2.8 trillion (approximately €2.6 trillion) market value. Alphabet sits at No. 4 and Microsoft ties for No. 7, both benefiting from investor interest for the firms producing the software, cloud services and AI platforms driving the current tech rally. Berkshire Hathaway, Saudi Aramco and Bank of America remain in the upper tier on the strength of their profits, assets and cash generation. Three Chinese banking giants (ICBC, China Construction Bank and Agricultural Bank of China) close out the top 10, a remnant from the era when Chinese lenders led the list

Of the 2003 top 10, only Bank of America is still on it today.

The Old Economy And The New

The Global 2000 still shows both faces of the world economy. The heavyweight banks continue to sit on the assets, the oil majors continue to produce the cash, and the retail giants continue to move the goods. The biggest change this year was the direction of investor interest. Businesses did almost the same work they did last year, but the markets repriced that same work with AI.

The winners of that repricing saw impressive growth in this year’s ranking. Chipmakers, server manufacturers, memory producers and the infrastructure firms powering AI data centres witnessed the biggest re-ratings anywhere on the list. Whether the market’s enthusiasm endures is the question the next twelve months will answer.

One in five workers across the European Union is exposed to high temperatures on the job, highlighting how extreme heat is becoming one of the fastest-growing workplace risks linked to climate change, according to the European Agency for Safety and Health at Work (EU-OSHA).

The warning comes as Europe experiences one of its most intense heatwaves in recent years, with soaring temperatures disrupting daily life, straining healthcare systems and affecting millions of workers.

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Productivity Comes Under Pressure

Robert Marks, chief climate economist at Oxford Economics, said temperatures between 30°C and 40°C can significantly reduce productivity and disrupt operations across sectors such as construction, agriculture, manufacturing, retail and hospitality, where employees often work in uncontrolled environments.

As temperatures rise above 30°C, businesses typically face a double challenge: lower labour productivity and higher energy costs for cooling buildings and equipment.

Cyprus Faces Growing Heat Risks

The issue is particularly relevant in Cyprus, where increasingly frequent heatwaves have renewed attention on workplace safety, especially for outdoor workers.

When necessary, the Labour Inspection Department issues heat stress guidance based on the Wet Bulb Globe Temperature (WBGT) index, which takes both temperature and humidity into account. During periods of extreme heat, restrictions are commonly introduced for heavy and moderate outdoor work, including certain delivery services during the hottest hours of the day.

In 2025, the department issued at least five heat-related notices covering emergency measures and temporary work stoppages. No comparable emergency order has been identified so far in 2026.

Climate Change Is Expanding Workplace Risks

According to EU-OSHA, climate change is exposing workers to a broader range of occupational hazards, including extreme heat, ultraviolet radiation, air pollution and increasingly frequent extreme weather events.

Heat stress can lead to dehydration, fatigue, heat-related illness and reduced concentration, increasing the likelihood of workplace accidents. Limited recovery between shifts, particularly where homes lack adequate cooling, can further worsen health risks.

The agency also points to growing exposure to floods, wildfires and poor air quality, which increase the risk of injuries, respiratory diseases and other health problems. Emergency responders face additional hazards, including toxic gases, fire and psychological stress.

Employers Expected To Adapt

EU-OSHA says employers should assess climate-related workplace risks and introduce preventive measures, prioritising engineering and organisational controls before relying on personal protective equipment.

Common measures include adjusting working hours, increasing rest breaks, providing drinking water, improving ventilation and cooling, and supplying appropriate protective clothing. The agency also recommends heat action plans, worker training and the use of digital tools such as heat-alert systems.

Outdoor Workers Face The Greatest Exposure

Outdoor occupations remain the most vulnerable to rising temperatures and extreme weather. Agricultural and forestry workers, construction employees, firefighters, police officers and rescue personnel face elevated risks from heat stress, physical exhaustion and hazardous conditions.

Indoor workers are also affected. Employees in poorly ventilated buildings or high-temperature industries, as well as healthcare staff wearing protective equipment during heatwaves, face a higher risk of heat-related illness while demand for medical services increases.

As Europe adapts to a warming climate, heat is becoming more than a seasonal challenge. For employers and policymakers alike, it is increasingly a workforce, productivity and economic issue requiring long-term adaptation.

Cyprus recorded a sharp increase in building permits during the first quarter of 2026, pointing to continued momentum in the country’s construction sector despite rising development costs.

Permits Jump On Robust Project Pipeline

According to the Statistical Service of Cyprus (Cystat), the number of building permits issued between January and March rose 44.1% year on year to 2,276, compared with 1,580 in the same period of 2025.

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March accounted for 776 permits with a combined value of €433.1 million and a total authorised floor area of 353,900 square metres. The permits cover the construction of 1,940 housing units.

Value, Floor Area And Housing Units All Advance

Growth extended across all key indicators during the first quarter.

The total value of permits increased by 41.6% year on year, while authorised floor area expanded by 40.2%. The number of approved housing units recorded the strongest increase, rising 58.4% compared with the first quarter of 2025.

Building permits are generally viewed as a leading indicator of construction activity, as they typically precede new development projects by several months.

Construction Activity Continues To Expand

The latest figures are broadly consistent with other recent indicators from Cyprus’ construction sector.

Earlier Cystat data showed that the Index of Production in Construction rose 0.7% year on year in the first quarter of 2026. At the same time, the Output Prices Index increased 3.0% from the previous quarter and 4.7% compared with a year earlier, highlighting continued cost pressures across the industry.

Housing Market Remains Supportive

The construction pipeline has also been supported by resilient demand in the residential property market.

According to Eurostat, house sales in Cyprus increased by 3.8% in 2025 after declining 1.1% in 2024. Rental prices also continued to rise during the first five months of 2026, while house prices increased 1.6% quarter on quarter in the first three months of the year.

Taken together, the latest data suggest that construction activity remains on an upward trajectory, although developers continue to face higher building costs alongside growing project volumes.

Cyta has signed an agreement to acquire the RedMax Data Centre in the Latsia Industrial Area, marking a significant expansion of its digital infrastructure and reinforcing Cyprus’ ambitions to strengthen its position as a regional data hub.

The acquisition includes a phased expansion and upgrade of the facility. The first phase is expected to become operational in early 2027, with the completed project set to become the largest privately owned data centre in Cyprus.

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Expanding Digital Infrastructure

The investment significantly expands Cyta’s data centre portfolio, increasing its capacity to provide cloud services and equipment colocation for businesses, public sector organisations and international institutions.

According to Cyta, the upgraded facility will offer secure, high-availability infrastructure built to international standards, incorporating advanced physical security and cybersecurity systems, ISO certifications and renewable energy sources to meet part of its electricity demand.

“The investment is the next significant step in the development of Cyta Data Centers,” the company said, adding that the project will strengthen its ability to deliver cloud and hosting services at a larger scale.

Cyta also said the investment, together with its existing data centres and international submarine cable network, will further enhance Cyprus’ role as a regional digital hub while supporting the country’s technological and economic development.

Part Of A Global Data Centre Expansion

The investment comes as spending on data centres accelerates worldwide, fuelled by growing demand for cloud computing and artificial intelligence infrastructure.

Technology research firm Omdia estimates cumulative global investment in data centres will approach $1.6 trillion by 2030, while leading technology companies are expected to spend more than $600 billion on AI infrastructure in 2026 alone.

McKinsey & Company projects that global investment in data centres will reach $6.7 trillion by 2030, with the majority directed toward AI-ready facilities capable of supporting increasingly complex computing workloads.

Strengthening Cyprus’ Digital Position

Against that backdrop, Cyta’s investment reflects the growing strategic importance of digital infrastructure as countries compete to attract cloud services, AI workloads and international data storage.

For Cyprus, the project represents more than an expansion of capacity. By combining a larger data centre footprint with its international submarine cable network, Cyta is strengthening the island’s position as a digital gateway connecting Europe, the Middle East and neighbouring regions.

Forterra, the U.S. autonomous vehicle developer, says more than 100 of its self-driving all-terrain vehicles have been operating in Ukraine’s combat zones over the past nine months. If confirmed, the deployment would represent what the company believes is the largest operational use of autonomous ground vehicles in combat by a U.S. defense technology firm.

“I believe this to be true of every defense technology that’s ever been created—until you hit the realities of combat, you’re just not going to know,” Scott Sanders, Forterra’s chief growth officer and a former U.S. Marine officer, told TechCrunch.

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Ukraine Has Become A Testing Ground

Supported by U.S. defense funding, the deployment reflects a broader effort to evaluate emerging military technologies under real battlefield conditions. While much of the war has highlighted the role of aerial drones, it has also exposed growing demand for autonomous ground vehicles capable of transporting supplies and evacuating casualties under fire.

“There’s nowhere to hide,” Sergeant Major Corey Wilkens, who leads a U.S. Army programme focused on autonomous vehicles, told TechCrunch, pointing to the growing threat posed by drones, artillery and mortar fire.

Built For Battlefield Logistics

Ukraine has developed its own uncrewed ground vehicles, but they are generally battery-powered and limited to payloads of around 250 kilograms. Forterra’s Lancer vehicles, built on Polaris all-terrain vehicles, use petrol engines and can carry up to 750 kilograms, making them better suited for frontline logistics.

“The bottom line is that this UGV for logistics… is the most important UGV in Ukraine,” a Ukrainian soldier told TechCrunch. “It’s fantastic, and we are dying to get more.”

Lessons From Combat

Initially, Ukrainian forces viewed the system with some skepticism, but Forterra says adapting the vehicles by adding Starlink satellite connectivity significantly improved their effectiveness on the battlefield.

Since arriving in Ukraine last October, the vehicles have travelled more than 2,500 miles across over 1,100 missions, transported nearly 780,000 pounds of cargo and completed 52 casualty evacuations. Some have been destroyed after becoming immobilised in difficult terrain or exposed to Russian attacks.

The deployment has also provided valuable operational data on electronic warfare, software updates, mobility and vehicle reliability, strengthening Forterra’s position as it competes for future U.S. defense contracts.

Autonomy Still Has Limits

Despite the progress, Ukrainian operators continue to rely heavily on remote control rather than fully autonomous driving during combat missions. Current systems can navigate challenging terrain independently but still struggle to respond to rapidly changing battlefield threats without human intervention.

“We actually need to be able to respond to enemy threats live… which the autonomy doesn’t know how to do yet,” the Ukrainian soldier said.

Forterra is now working to combine its autonomous driving software with generative AI while continuing to rely on more traditional robotics for specialised military tasks.

Competition Is Growing

Forterra is one of several companies developing autonomous military vehicles. Competitors including Scout AI, Field AI and Overland AI are also working with the U.S. military to advance autonomous ground systems. Even so, military officials believe the technology has already proved its potential.

“Ground autonomy is achievable now and we’ve seen it,” Wilkens said.

Cost Remains A Major Challenge

For Ukrainian operators, affordability is becoming as important as capability. Although Forterra’s vehicles benefit from commercially available Polaris platforms, they remain too expensive to lose at the rate that aerial drones are routinely lost in combat.

“Attrition is just a fact of this battlefield,” the Ukrainian soldier said. “We have lost a few… we need more, and therefore we need them cheaper.”

The experience in Ukraine suggests autonomous ground vehicles are moving beyond experimentation. Their next challenge will be becoming affordable and adaptable enough for large-scale battlefield deployment.

The Bank of Cyprus has updated its Privacy Statement to reflect current European and national data protection requirements, reinforcing transparency around how personal data is collected, processed and protected.

Aligned With European Data Protection Rules

The updated statement incorporates the requirements of the General Data Protection Regulation (GDPR), Regulation (EU) 2016/679, along with applicable national legislation governing the processing of personal data.

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Who The Statement Covers

The revised Privacy Statement applies to current and prospective customers, their authorised representatives, as well as the beneficial owners of corporate customers and prospective corporate customers.

What The Update Includes

According to the bank, the document explains how personal data is collected, used, stored and protected, while outlining the rights available to individuals under applicable data protection legislation.

The bank encourages customers and other affected parties to review the updated statement to better understand how their personal information is handled.

How To Access The Statement

The revised Privacy Statement is available on the Bank of Cyprus website, through the bank’s digital channels and at all Bank of Cyprus branches.

Larnaca’s port and marina could enter a new phase of development under a €415 million long-term proposal unveiled by the Cyprus Ports Authority (CPA), which aims to transform the city’s waterfront into an integrated coastal district through a mix of public investment, municipal participation and private-sector partnerships.

The proposed roadmap, valued at €415 million, plus or minus 50%, would be implemented over 20 years and seeks to unlock two state-owned assets that have remained largely underutilised following three unsuccessful attempts to attract private investors.

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Beyond upgrading the port and marina, the plan includes the redevelopment of around 85,000 square metres of land and the integration of Finikoudes with the former refinery area into a continuous waterfront featuring public spaces, pedestrian routes, cycling paths, squares and leisure facilities.

A Single Master Plan For An Integrated Coastal District

The CPA would retain ownership of the assets while inviting private investment through partnership agreements. Development would follow a single master plan built around three priorities:

• redevelopment of the marina’s surrounding land;
• expansion and upgrade of the marina;
• modernization and long-term development of the commercial port.

The roadmap covers the period from 2027 to 2045 and begins with the preparation of a master plan, sustainability studies and consultations with local stakeholders. An architectural competition and Concept Master Plan would then establish the overall framework for the project.

The authority noted that all cost estimates remain indicative and could vary by as much as 50% until the master plan is completed.

Land Development Marks The First Phase

The redevelopment of land surrounding the marina and port represents the largest visible transformation for residents and visitors. Budgeted at approximately €190 million, the programme covers both the existing marina site and neighbouring land extending towards the port.

Early works would focus on improving public spaces, relocating the existing shipyards, upgrading road infrastructure and creating new parking facilities. Later phases envisage hotels, office buildings, restaurants, exhibition venues, sports facilities, cultural projects and other commercial developments delivered largely through concession agreements with private investors.

Marina Expansion Focuses On Capacity

The marina component carries an estimated budget of €20 million and is designed to increase capacity by 150 to 200 berths under the Growth Fund’s Scenario 2 proposal.

The programme includes maintenance of existing infrastructure, construction of a new services building, expansion of the breakwater, a new southern quay wall and additional floating docks.

Port Modernization Forms The Largest Investment

At an estimated €205 million, the port redevelopment accounts for almost half of the overall programme.

Initial investment would focus on upgrading equipment, infrastructure networks and existing facilities while maintaining uninterrupted operations. Later phases include new passenger and administrative buildings, demolition of obsolete warehouses, construction of new quay walls, expansion of commercial berths and the creation of a new harbour basin capable of accommodating both cargo and passenger vessels.

A Long-Term Vision For Larnaca

If approved, the proposal would reshape one of Cyprus’ most strategically important coastal areas over the next two decades.

By combining transport infrastructure, commercial development and public spaces under a single master plan, the CPA aims to transform Larnaca’s port and marina into an integrated waterfront district capable of supporting tourism, investment, business activity and urban regeneration.

Limassol, Cyprus — July 7, 2026.

The Warehouse is hosting 707Conf today, the first business-to-business conference created specifically for Cyprus’ event industry. Running from 15:00 to 22:00, the one-day event brings agencies, venues, contractors and technical crews together with the client brands that hire them, all within an aviation-themed format featuring boarding passes instead of badges, a “Ground Crew” of service partners and a “Flight Alliance” of client brands.

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Tickets (€14) are sold through SoldOut Ticketbox. The event is produced by The Warehouse’s own team, led by founder Ilya.

The Agenda

• 15:00 — Boarding. Doors open, registration, exhibition zone live all day.
• 15:30 — Takeoff. Opening remarks.
• 15:45 — Clients, Unfiltered. A plenary panel bringing together six client-side brands to discuss what actually makes them choose, or drop, an agency or venue.
• 16:30 — Love at First Pitch. A speed-dating format pairing suppliers directly with client brands for fast, structured introductions.
• 17:15 — Discussion Club: Occupational Hazards. A moderated roundtable on the industry’s real operating risks, led by Varvara Rumiantseva.
• 18:00 — Masterclass. A hands-on session led by Alex Barin.
• 18:40 — Debrief. Closing reflections and key takeaways from the day.
• 19:00 — Night Flight. The conference moves into the evening at The Warehouse’s W Bar, where live artists will bring the day to a close.

Exhibition booths will remain open throughout the event, giving Ground Crew partners and exhibitors the opportunity to connect directly with attendees.

A Word From The Founder

“Cyprus has never had a day dedicated entirely to the people who make the events industry happen. This isn’t another client-facing showcase. It’s a space where agencies, venues and production teams can exchange ideas, build relationships and do business with one another. That’s what 707Conf is about.

We’re not asking anyone to pitch to us. Instead, we’re bringing suppliers and the brands that hire them together, on the same schedule, creating opportunities for conversations that usually happen behind the scenes to take place out in the open,”

Ilya, Founder & General Manager, The Warehouse.

Flight Alliance — The Client Brands

1. SayGames.
2. TrafficStars.
3. Gugujinda.
4. MetUp.
5. inDrive.

Ground Crew — The Partners Behind The Conference

• SoldOut Tickets – Ticketing
• The Warehouse – Venue
• EMpicnic – Daytime Catering
• Aliada – Evening Catering
• BARBROS – Bar
• Loft Shisha
• TOP TRANSFER – VIP Transport
• Creativerent – Business Lounge
• EPTA PRO – Lighting & Sound
• AP Group – Stage Structures
• SketchMe – Live Portrait Artists
• Mortal Security Services – Security
• A2V Lab – Video & LED
• The Future Media – Media Partner

Event Information

What:  707Conf — Cyprus Event Industry Day

When:  July 7, 2026 (07.07), 15:00–22:00

Where:  The Warehouse, Synergatismou 20, Limassol

Tickets:  €14 via SoldOut Ticketbox

Web:  707conf.com

Instagram: 707conf

Cyprus delivered the strongest monthly increase in retail trade volume among European Union member states in May 2026, according to the latest figures from Eurostat, highlighting the island’s resilience at a time when consumer spending across much of Europe remained subdued.

Cyprus Outperforms The Bloc

Retail trade volume in Cyprus rose 3.7% between April and May, the strongest monthly increase recorded in the EU. By comparison, seasonally adjusted retail sales edged up just 0.2% across the euro area and 0.5% across the European Union.

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The rebound came after a weaker April, when retail trade volumes declined by 0.3% in the euro area and 0.6% across the EU.

Mixed Trends Across Retail Categories

Performance varied across retail segments. In the euro area, sales of food, drinks and tobacco increased 0.6% month on month, while non-food products excluding automotive fuel edged up 0.1%. Automotive fuel sales in specialised stores, however, declined 0.5%.

A similar pattern emerged across the EU, where food, drinks and tobacco also rose 0.6%, non-food sales increased 0.5%, and automotive fuel sales slipped 0.4%.

Other Member States Posted Gains And Declines

After Cyprus, Luxembourg recorded the second-largest monthly increase at 3.6%, followed by Poland with 2.4%.

At the other end of the ranking, Estonia posted the steepest monthly decline at 2.2%, ahead of Croatia at 2.0%. Belgium and Lithuania each recorded a 0.7% fall.

Annual Growth Also Favors Cyprus

Cyprus also led the bloc on an annual basis. Retail trade volume was 8.4% higher in May than a year earlier, ahead of Bulgaria, where sales increased 7.9%, and Luxembourg, which recorded growth of 7.8%.

Across the euro area, annual retail sales rose 2.4% for food, drinks and tobacco and 2.3% for non-food products, while automotive fuel sales declined 4.6%.

EU-wide figures showed food, drinks and tobacco sales up 1.9% year on year, with non-food products rising 2.8%. Automotive fuel sales, meanwhile, fell 2.9%.

A Useful Signal For Consumer Demand

The latest figures point to a widening divergence in consumer spending across the bloc, with Cyprus standing out as one of the strongest-performing retail markets. At a time when many European economies continue to grapple with weak growth and cautious household spending, the island’s robust retail performance suggests domestic demand has remained resilient.

By contrast, Romania recorded the largest annual decline in retail trade volume, at 4.0%, followed by Estonia at 0.5% and Belgium at 0.4%, underscoring the uneven pace of consumer recovery across the EU.

Chinese-built AI models are gaining traction among U.S. businesses as improving performance and significantly lower costs prompt companies to rethink their reliance on leading American systems.

Models from developers including DeepSeek, Z.ai and Alibaba are increasingly being viewed as viable alternatives to offerings from OpenAI and Anthropic, particularly for tasks where cutting-edge performance is not essential.

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Open-Source Models Gain Ground

According to OpenRouter, a platform that provides developers with access to multiple AI models, Chinese models have accounted for more than 30% of tokens used by U.S. companies each week since early February, with their share peaking at 46%.

That marks a sharp increase from an average of 11% over the previous year, reflecting growing demand for open-source and open-weight models as businesses become more focused on controlling AI costs.

The shift comes as Washington tightens oversight of advanced AI technologies. In June, OpenAI delayed the release of a new model at the request of the U.S. government, while export restrictions on Anthropic’s Mythos and Fable models were later lifted.

“Chinese AI models are particularly attractive to American companies now as AI costs skyrocket,” Kyle Chan, a fellow at the Brookings Institution’s John L. Thornton China Center, told CNBC. “Companies are becoming much more cost-conscious.”

Cost Is Driving Adoption

As enterprises scale AI deployments, many are shifting routine workloads to lower-cost models that deliver comparable performance. Unlike most proprietary systems from OpenAI, Anthropic and Google, open-source and open-weight models allow developers greater control over deployment, customization and operating costs. AI startup Lindy recently migrated all of its workloads from Anthropic’s Claude models to DeepSeek.

“We did it, and you could see that cost curve go down, like, crash to the ground,” CEO Flo Crivello told CNBC, adding that the move is expected to save the company millions of dollars.

Vercel also reported rapid adoption of Z.ai’s GLM 5.2 model after its June launch.

“Price is doing the work here,” said Harpreet Arora, the company’s head of agentic infrastructure. “When a task doesn’t need the best model, teams are beginning to route it to the cheapest one that’s good enough.”

According to OpenRouter, some Chinese open-source models can cost between 60% and 90% less than comparable offerings from OpenAI and Anthropic.

Narrowing The Performance Gap

Lower prices are only part of the story. Chinese AI models are also closing the performance gap with leading U.S. systems.

Chan estimates they now trail the most advanced American models by roughly six to nine months, while OpenRouter’s Justin Summerville said the latest open-source models perform well enough for all but the most demanding AI workloads.

GLM 5.2 came within one percentage point of Anthropic’s Opus 4.8 on a widely followed agentic benchmark while costing roughly one-fifth as much. Lindy also reported performance improvements after switching to DeepSeek V4.

“Chinese models like Z.ai and Alibaba’s Qwen are becoming attractive options because they offer a compelling balance of performance and cost,” said Cien Solon, founder and CEO of LaunchLemonade.

As AI adoption accelerates, companies are increasingly weighing whether the highest-performing proprietary models justify their premium pricing. For many everyday workloads, a growing number are concluding that lower-cost Chinese alternatives are good enough.