# China’s Tech Titans Are Giving Away Money and Cars in ‘The Lunar New Year AI War’
As Lunar New Year approaches on February 17, 2026, marking the Year of the Horse, China’s tech giants are locked in an epic battle dubbed the “Lunar New Year AI War.” ByteDance, Alibaba, Tencent, and Baidu are showering users with billions in cash, cars, robots, and vouchers through their AI apps, turning holiday festivities into a high-stakes showdown for consumer AI dominance.[1][2][3]
## The Frenzy Begins: Red Envelopes Go Digital and High-Tech
In China, Lunar New Year traditions include “red envelopes” filled with cash for good luck. Tech companies have digitized this custom into massive giveaway campaigns tied to their generative AI apps. ByteDance kicked off the latest salvo on February 10, unveiling a promotion for its flagship Doubao AI app during the nationally televised Spring Festival Gala on February 16—Chinese New Year’s Eve. The campaign promises cash giveaways and over 100,000 prizes, including **cars**, **robots** from Unitree Robotics, and other luxury items.[1]
Doubao, already China’s top AI app with 155 million weekly active users by December 2025, is leveraging this push. ByteDance has poured nearly 20 billion yuan ($2.9 billion) into AI development and partnerships in 2026, fueling aggressive marketing.[1] Its Volcano Engine subsidiary even secured an exclusive AI cloud partnership with the Gala, embedding Doubao’s voice and language tech into prize robots.[1]
Rivals aren’t holding back. Alibaba’s Qwen AI chat app launched a 3 billion yuan ($433 million) “Spring Festival Treat Plan” on February 6, offering instant bubble tea vouchers redeemable via the AI model. Orders surged past 10 million in nine hours, crashing servers and overwhelming stores—prompting WeChat to block sharing links for “disrupting the ecosystem.”[2][5] Qwen rocketed to No. 1 on Apple’s App Store free-download chart in China by February 7, with Doubao at No. 2 and Tencent’s Yuanbao at No. 6.[1]
Tencent’s Yuanbao AI assistant dropped a 1 billion yuan ($140-143 million) prize pool on February 1, focusing on digital cash red envelopes.[1][2][5] Baidu’s Wenxin AI (also called Ernie) followed on January 26 with a 500 million yuan ($72 million) cash giveaway.[1][2][5] Combined, these efforts exceed USD 200 million in giveaways, blending AI demos with tangible rewards like vehicles and gadgets.[4]
## Why Now? AI Dominance in a Booming Market
This “red envelope war” targets China’s fast-growing consumer AI sector, where apps like Doubao, Qwen, Yuanbao, and Wenxin compete for daily users amid the holiday’s record 9.5 billion inter-regional trips.[1][2] Lunar New Year is peak shopping season, and companies are using AI to drive engagement—users interact with chatbots for prizes, boosting app rankings and data collection.[2][3]
The tactics echo past e-commerce battles but spotlight **AI and robotics**. Unitree robots, powered by Doubao’s language models, exemplify how giveaways showcase real-world applications.[1] Alibaba’s voucher overload demonstrated Qwen’s ordering prowess, even if it caused chaos.[2] These promotions have propelled apps up charts: Qwen led, followed closely by challengers.[1]
ByteDance’s Gala tie-in amplifies reach to hundreds of millions of viewers, positioning Doubao as a household name.[1] With Doubao’s user lead from late 2025, this could solidify its edge.[1]
## Beijing Steps In: Warnings Against ‘Involution’
The giveaway arms race hasn’t gone unnoticed. China’s State Administration for Market Regulation (SAMR) issued a stern reminder to tech platforms on curbing “involution” (*neijuan*)—cutthroat, low-quality competition seen in sectors like EVs and delivery.[3] Without naming firms, SAMR urged “fair and competitive” practices to foster innovation, not destructive price wars.[3]
Critics argue these subsidies degrade user experience and harm long-term growth, echoing WeChat’s backlash.[2][3] Yet, companies persist, betting short-term user surges translate to lasting loyalty in a market projected to explode.[1]
## What’s at Stake for Users and the Industry?
For everyday Chinese users, it’s a windfall: scan a QR code, chat with an AI, and win **cash**, **cars**, or robots during family gatherings.[1][2] Campaigns extend through the holiday, with Qwen prolonging its run past February 7.[2]
For tech titans, the prize is market share. ByteDance challenges Alibaba and Tencent’s incumbency, while Baidu defends its search roots.[1] Success here could dictate AI leadership, influencing everything from cloud services to e-commerce.[1][4]
As the Spring Festival Gala airs, eyes will be on prize draws—and app store rankings. This AI war blends ancient traditions with cutting-edge tech, proving China’s digital economy never sleeps, even during celebrations.[1][3]
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Original source: CNBC Business – China’s tech titans are giving away money and cars in ‘The Lunar New Year AI War’
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