TECH

Alibaba Pledges $432 Million in Lunar New Year AI Subsidy War

By Bao Yunhong

Published: Feb. 2, 2026 7:06 p.m. GMT+8

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Under the “Spring Festival Treat Plan,” Alibaba aims to attract new users and encourage habitual use of AI-driven shopping by offering free orders and cash incentives. Photo: VCG

Alibaba Group Holding Ltd. has committed 3 billion yuan ($432 million) to promote its artificial intelligence (AI) chatbot Qwen, escalating a Lunar New Year subsidy war with rivals Tencent Holdings Ltd. and Baidu Inc. as China’s tech giants compete for consumer mindshare.

Under the “Spring Festival Treat Plan,” Alibaba aims to attract new users and encourage habitual use of AI-driven shopping by offering free orders and cash incentives. Set to launch on Feb. 6, the campaign will extend beyond the Qwen app to include Alibaba’s core platforms such as Taobao, Fliggy, Damai, Freshippo, Tmall and Alipay, though specific mechanics have yet to be disclosed.

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Alibaba committed 3 billion yuan ($432 million) to promote its AI chatbot Qwen during the 2024 Lunar New Year, marking its largest ever holiday promotion.
Tencent and Baidu launched competing campaigns, pledging 1 billion yuan and 500 million yuan respectively, focusing on AI apps and TV partnerships.
ByteDance partnered with the 2026 CCTV Spring Festival Gala for AI cloud support but has not announced any cash incentives.

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Who’s Who

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. has committed 3 billion yuan ($432 million) to promote its AI chatbot, Qwen. This initiative is part of a Lunar New Year subsidy war with Tencent and Baidu, aiming to attract new users and encourage AI-driven shopping. Qwen is Alibaba's priority AI project and its primary entry point for AI users.

Tencent Holdings Ltd.: Tencent Holdings Ltd. is participating in a Lunar New Year subsidy war, pledging 1 billion yuan in cash incentives for its Yuanbao app. They are promoting Yuanbao in rural areas using loudspeaker trucks and painted wall slogans. Tencent's marketing strategy shifted after integrating the DeepSeek model into Yuanbao, leading to a tenfold increase in daily active users within a week.

Baidu Inc.: Baidu Inc. has entered a Lunar New Year subsidy war, committing 500 million yuan to incentivize users. This initiative involves a partnership with the 2026 Spring Festival Gala hosted by Beijing Radio and Television Station to roll out AI-powered interactive features.

ByteDance Ltd.: ByteDance Ltd. has secured the exclusive AI cloud partnership for the 2026 CCTV Spring Festival Gala through its Volcano Engine platform. Its Doubao app will provide interactive features for the event. Unlike its competitors, ByteDance has not yet announced a cash giveaway plan for the holiday season.

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What Happened When

Jan. 15, 2026：: Qwen team announced integrations with Alibaba’s core services, including Taobao and Fliggy, as preparation for the Lunar New Year campaign.

the week of January 26, 2026：: Baidu joined the subsidy campaign with a 500 million yuan incentive pool, partnering with the 2026 Spring Festival Gala hosted by Beijing Radio and Television Station.