Coinbase has started using cheaper Chinese AI models, cutting its spending in half while increasing token usage. The company is using models like GLM 5.2 and Kimi 2.7, and has implemented an automatic routing system to optimize performance. This move puts pressure on Western AI labs, which are already facing a pricing stress test as they prepare for potential IPOs. Other companies, like Snowflake, are also testing Chinese models, and a price war between OpenAI and Anthropic is brewing. Why it matters: this shift to cheaper AI models could have significant implications for the future of AI development and the business models of Western AI labs.