Alibaba, Tencent and Baidu are giving away billions in digital red envelopes to attract users ahead of expected new AI model launches this month.
BEIJING: Chinese technology giants are offering users cash incentives ahead of anticipated releases of competing artificial intelligence models this month.
Alibaba’s AI app Qwen announced it will distribute three billion yuan (approximately RM2.8 billion) in digital “red envelopes” starting February 6.
This follows similar campaigns from rivals Tencent and Baidu, as domestic competition intensifies in the surging global AI market.
Users who register with the apps get daily chances to win the red envelopes, which are usually worth only a few cents.
Baidu, offering 500 million yuan, is providing larger prizes including iPhones and televisions.
Tencent’s AI app Yuanbao is giving out one billion yuan, with a top prize worth 10,000 yuan.
“Interacting within the app, like discussing the holiday with its chatbot, can earn users additional chances,” the report stated.
Alibaba’s announcement comes a week after it released its latest model, Qwen3-Max-Thinking.
The company claims this model beats Google’s newest offering on reasoning, according to a statement.
Baidu also released a new model on January 22.
US media outlet The Information reported the tech firms are also looking to release new AI models during the Lunar New Year holiday.
This follows last year’s surprise from startup DeepSeek, which stunned the industry with a low-cost model performing on par with US rivals.
Analysts say DeepSeek’s decision to make its system’s inner workings public has boosted adoption by developers and businesses.
This open approach contrasts with the closed AI models sold by OpenAI and other Western competitors.
