Alibaba Bets $431 Million on AI App Push During Lunar New Year, Intensifying Tech Rivalry
BEIJING, Feb 2 (Reuters) — In a bold move to capture the nation's attention during its most important holiday, Chinese e-commerce giant Alibaba announced on Monday a 3 billion yuan ($431 million) marketing campaign for its Qwen artificial intelligence platform. The initiative, set to launch on February 6, dramatically raises the stakes in an ongoing battle for AI supremacy among China's tech titans.
The substantial investment triples the 1 billion yuan commitment recently unveiled by Tencent and dwarfs Baidu's 500 million yuan pledge for their respective AI chatbots. Alibaba stated the funds will fuel incentives across dining, entertainment, and leisure activities, promising "continuously distributed large red envelopes" to users.
This year's extended nine-day public holiday, beginning February 15, provides a critical window for user acquisition. The Lunar New Year period, when hundreds of millions travel and gather with family, has long been a digital marketing battleground. The strategy echoes the famed 2015 "red envelope war," where Tencent's WeChat successfully used festive gifting to challenge Alipay's dominance in mobile payments.
The current AI arms race has intensified since early 2023, when the launch of DeepSeek's R1 model signaled a new phase of rapid innovation and competition within China's tech sector. Beyond consumer promotions, companies are racing to release technical upgrades. Industry reports suggest DeepSeek may unveil its next-generation V4 model, noted for advanced coding capabilities, in mid-February.
Tencent's campaign for its Yuanbao AI app begins Sunday, requiring app updates for users to claim digital red envelopes transferable to WeChat Pay. Alibaba has not detailed whether its Qwen rewards will be direct cash transfers or platform-specific coupons for services like Taobao.
Industry Voices
Michael Chen, Tech Analyst at Shanghai-based Horizon Insights: "This isn't just about user growth; it's a strategic land grab for training data and ecosystem dominance. The holiday surge in engagement provides invaluable real-world interaction data to refine these models."
Lisa Wang, Product Manager at a Fintech Startup: "As a consumer, it's exciting to see these tools becoming more accessible and integrated into daily life through these promotions. It lowers the barrier to entry for many."
David Zhang, Independent Software Developer: "This cash-burning spectacle is a distraction. Instead of throwing billions at gimmicks, these giants should focus on developing genuinely useful, unbiased, and secure AI. This is a wasteful race to the bottom that benefits shareholders, not the public."
Professor Eleanor Shaw, Technology Policy Researcher at Hong Kong University: "The scale of investment underscores how central AI has become to the core business strategy of these firms. However, it also raises questions about sustainable customer retention beyond the incentive period and the long-term market structure."
($1 = 6.9519 Chinese yuan)
(Reporting by Liam Mo and Brenda Goh; Editing by Stephen Coates)