TECH

China’s AI App Developers Lure New Users With Digital Red Envelopes

Published: Jan. 26, 2026 7:19 p.m. GMT+8

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As the Lunar New Year holiday approaches, Chinese internet and tech giants are handing out enormous amounts of cash in the form of digital red envelopes to lure new users of their artificial intelligence (AI) apps.

Following the Chinese tradition of young people receiving red envelops stuffed with cash from their elders, China’s internet giants have in recent years seized the opportunity to boost traffic and gain new users — and their valuable personal data.

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Chinese tech giants Baidu and Tencent are offering 500 million yuan and 1 billion yuan, respectively, in digital red envelopes during Lunar New Year to promote their AI apps.
Tencent’s AI chatbot Yuanbao saw a tenfold increase in daily active users after integration with DeepSeek, reaching nearly 33 million MAUs by September 2025.
Alibaba rebranded its AI assistant as Qwen in November 2025, surpassing 30 million monthly active users.

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Who’s Who

Baidu Inc.: Baidu Inc., a dominant Chinese search engine, is distributing virtual red envelopes worth 500 million yuan ($72 million) from Monday as part of a Chinese New Year event. Users participating through its AI app, Ernie Assistant, can receive up to 10,000 yuan as a cash gift. This initiative aims to attract new users and boost engagement with its AI offerings.

Tencent Holdings Ltd.: Tencent Holdings Ltd. is giving away 1 billion yuan in digital red envelopes from February 1st through its AI chatbot Yuanbao. This marketing campaign aims to attract users as Yuanbao, integrated with DeepSeek and WeChat, has become a popular AI app in China with 33 million monthly active users as of September 2025.

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. rebranded its AI assistant app to Qwen in November 2025. Qwen serves as a gateway for consumers to access diverse AI-powered services like mapping, shopping, and healthcare. Its monthly active users have surpassed 30 million.

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What Happened When

September 2025：: Tencent's AI chatbot Yuanbao reached nearly 33 million monthly active users (MAUs) as of this date.

November 2025：: Alibaba rebranded its AI assistant app to Qwen.

Sunday, January 25, 2026：: Baidu announced it would issue virtual red envelopes worth 500 million yuan from the following day to users taking part in a Chinese New Year event launched by its AI app Ernie Assistant. Tencent also announced a marketing campaign to give away 1 billion yuan in digital red envelopes starting February 1, 2026.