Alibaba to Spend $431M on Qwen AI User Incentives for Lunar New Year

Tech

Alibaba to Spend $431M on Qwen AI User Incentives for Lunar New Year

• Alibaba will invest 3 billion yuan to promote its Qwen AI app during the Lunar New Year holiday.
• The incentive campaign starts February 6 and includes red envelopes for dining, entertainment, and leisure.
• Alibaba‘s spending exceeds Tencent’s 1 billion yuan and Baidus 500 million yuan AI promotions.
• Tencent will promote its Yuanbao chatbot with cash rewards linked to WeChat wallets.
• DeepSeek plans to launch its V4 AI model in mid-February, increasing domestic AI competition.

Alibaba will invest 3 billion yuan ($431 million) to promote its Qwen AI app during the upcoming Lunar New Year. According to Reuters, the company plans to distribute red envelopes and incentives across dining, drinks, and entertainment. This campaign begins on February 6 and expands Alibaba‘s push in China’s growing AI competition.

Tech Giants Compete for Users with Holiday AI Campaigns

Alibaba‘s spending surpasses previous announcements from competitors Tencent and Baidu, who pledged 1 billion yuan and 500 million yuan, respectively. Both campaigns focus on promoting their AI chatbot platforms during China’s busiest holiday travel season. The promotions aim to drive app downloads and usage as user attention spikes during the festival.

Tencent will promote its Yuanbao chatbot starting February 4 and require users to update their app to access rewards. The company said red envelopes could be transferred to users‘ WeChat wallets after completion of in-app tasks. Users may also invite others through reward links, expanding the program’s reach organically.

Alibaba confirmed its campaign will offer continuous red envelopes but did not clarify the exact reward type. The incentives may include either direct cash or discount vouchers redeemable through Alibaba platforms like Taobao. The campaign is scheduled to coincide with the nine-day Lunar New Year public holiday beginning February 15.

DeepSeek, Baidu Also Prepare AI Platform Upgrades

AI developer DeepSeek is expected to release its V4 model in mid-February, with enhanced capabilities in software coding and language understanding. The company has accelerated its development roadmap since last years release of its R1 model. That launch triggered increased competition among domestic AI firms.

Baidu will join the seasonal campaign with rewards linked to its chatbot platform. The company aims to draw new users through promotional red envelopes distributed during the holiday. Baidus strategy mirrors past user acquisition models that combine marketing with cultural events.

Chinese tech firms have historically used the Lunar New Year to drive adoption of new apps and technologies. Tencent‘s 2015 red envelope campaign helped grow WeChat Pay into a leading mobile payments platform. This year’s longer holiday period presents an extended window for companies to expand their AI user base.

The post Alibaba to Spend $431M on Qwen AI User Incentives for Lunar New Year appeared first on Blockonomi.