Coinbase switches default AI model to open-source models GLM5.2, Kimi2.7, reducing AI costs by half

BlockBeats News, June 28th, Coinbase CEO Brian Armstrong revealed that the company has reduced AI expenses by nearly half by switching the default AI model to open-source models such as GLM 5.2 and Kimi 2.7, implementing intelligent model routing, cache optimization, and other measures amid a continued exponential growth in token usage.

Brian Armstrong stated that Coinbase no longer relies on usage limits or consumption alerts to control costs, but instead adopts cost-effective open-source models by default and only calls upon more powerful cutting-edge models in necessary scenarios. Furthermore, the company has further reduced inference costs through automatic model routing, improved cache hit rates, and streamlined context.

It is worth noting that this announcement comes at a time when Anthropic CEO has recently expressed concerns about open-source models and model distillation. Coinbase's practice demonstrates that in enterprise-level AI applications, open-source models are becoming an important choice for balancing cost and efficiency.