Over 70% of businesses are now investing in AI chat app development, with the global market expected to reach $10.5 billion by 2026. The recent release of Vercel AI SDK v7 has made it easier for developers to build production-ready AI apps in TypeScript. But most tutorials still rely on expensive models like OpenAI, which can cost $5-30 per million tokens. The good news is that Chinese LLMs like DeepSeek V4 and Qwen 3.7 offer comparable quality at a fraction of the cost.
The integration of Vercel AI SDK v7 with TunanAPI, an OpenAI-compatible gateway to Chinese AI models, has made it possible to build a fully streaming chat app in under 15 minutes. This article will explore the latest developments in AI chat app development, including the use of Chinese LLMs and the benefits of Vercel AI SDK v7. Readers will learn how to build a streaming AI chat app with multi-model support, React UI hooks, and 10x cheaper than equivalent OpenAI setup.
By the end of this article, readers will have a comprehensive understanding of the latest advancements in AI chat app development and how to with Vercel AI SDK v7 and Chinese LLMs to build a high-quality, cost-effective chat app.
How to Build a Streaming AI Chat App with Vercel AI SDK v7
The first step in building a streaming AI chat app is to set up a Next.js project using the Vercel AI SDK v7. This can be done by running the command npx create-next-app@latest ai-chat-app --typescript --tailwind --app and then installing the required dependencies, including @ai-sdk/openai-compatible and @ai-sdk/react.
The next step is to configure the TunanAPI provider, which involves creating a file at lib/ai-provider.ts and importing the createOpenAICompatible function from @ai-sdk/openai-compatible. This function takes an options object with the name, baseURL, and headers for the TunanAPI provider.
- Key point 1: The TunanAPI provider supports multiple Chinese LLMs, including DeepSeek V4, Qwen 3.7, and GLM-4, offering a range of capabilities and price points.
- Key point 2: The Vercel AI SDK v7 provides built-in support for 20+ model providers, streaming UI hooks, and agent orchestration, making it the framework of choice for developers building AI-powered web applications.
- Key point 3: The integration of Vercel AI SDK v7 with TunanAPI enables developers to build a fully streaming chat app in under 15 minutes, with a 10x cheaper cost compared to equivalent OpenAI setup.
Benefits of Using Chinese LLMs for AI Chat App Development
Chinese LLMs like DeepSeek V4 and Qwen 3.7 offer several benefits for AI chat app development, including lower costs, comparable quality, and a range of capabilities. According to a recent study, Chinese LLMs can achieve up to 90% of the performance of OpenAI models at a fraction of the cost.
The use of Chinese LLMs also enables developers to build more customized and specialized chat apps, tailored to specific industries or use cases. For example, the DeepSeek V4 model is designed for general-purpose chat applications, while the Qwen 3.7 model is optimized for maximum capability.
- Benefit 1: Chinese LLMs offer a significant cost savings compared to OpenAI models, with prices starting at $0.50 per million tokens.
- Benefit 2: Chinese LLMs provide comparable quality to OpenAI models, with some models achieving up to 90% of the performance of OpenAI.
- Benefit 3: Chinese LLMs enable developers to build more customized and specialized chat apps, tailored to specific industries or use cases.
Technical Requirements for Building a Streaming AI Chat App
To build a streaming AI chat app, developers need to have a solid understanding of the technical requirements, including the use of Vercel AI SDK v7, TunanAPI, and Next.js. The app should also be designed with a user-friendly interface, using React UI hooks to enable real-time rendering.
The app should also be optimized for performance, using techniques such as caching, compression, and minification to reduce latency and improve user experience. According to a recent study, a 1-second delay in page loading can result in a 7% reduction in conversions.
- Technical requirement 1: The app should be built using Vercel AI SDK v7, which provides built-in support for 20+ model providers, streaming UI hooks, and agent orchestra
