AI giants in China, including Alibaba, Tencent, and Baidu, are offering “red envelopes” or cash gifts to lure more users to their chatbots before the reported release of their new AI models later this month (via a Techxplore report citing AFP).
Alibaba, for instance, has formulated a budget of CNY 3 billion (around USD 430 million) to be offered as cash gifts to users of its AI app, Qwen. The promotional campaign begins on February 6, 2026, right in time for the Chinese New Year.
Chinese companies are preparing for next-gen AI showdown
After Alibaba, Tencent and Baidu will also commence with their campaigns. While the former has pledged CNY 1 billion (with top prizes of around CNY 10,000), the latter is giving away CNY 500 million, not only in cash, but also in the form of iPhones and TVs.
To claim cash prizes (or iPhones), Chinese users must register with the relevant AI apps and interact with them (asking questions about complex topics, planning holidays, etc.) during the promotional period; it’s really that simple.
It’s clear that the Chinese AI giants want to increase their active user base before rolling out their new and more advanced models later this month, but that doesn’t seem to be the only motivation behind the promotional pile of around CNY 4.5 billion.
Why Apple might be watching China’s AI battle closely
As they release advanced AI models, these companies are competing with global AI players like Google and OpenAI. Alibaba, for instance, claims that its Qwen3-Max-Thinking model outperforms Google’s Gemini 3 in reasoning.
In doing that, the Chinese firms are also eyeing a chance to become Apple’s local AI facilitator in the region. Since the iPhone maker can’t use Gemini to power its advanced AI features (including the new Siri) in China, it has to outsource the back-end to a platform that meets its stringent standards.
A Bloomberg report from February 2025 also claims that Apple will use Alibaba’s AI in China, but the iPhone maker hasn’t confirmed anything yet. As and when Apple finalizes a Chinese firm for its upcoming Apple Intelligence features, it should announce the provider (either to the public or to its investors).