In a decisive move to capture China’s artificial intelligence market, Alibaba is launching an aggressive promotional campaign for its Qwen chatbot. The company has earmarked a substantial war chest to drive user adoption during the upcoming Lunar New Year period, a critical window for digital engagement in the country.
A Substantial Investment for User Acquisition
Alibaba has allocated 3 billion yuan (approximately $431 million USD) to promote its Qwen application. This marketing budget, revealed on Monday, February 2, significantly overshadows the spending of its key rivals. According to Reuters, the sum is three times larger than Tencent’s 1 billion yuan budget and far exceeds Baidu’s 500 million yuan allocation for similar AI promotional activities.
The campaign is scheduled to commence on February 6, strategically timed before the official holiday period begins on February 15. The nine-day festival is China’s peak travel and family time, when smartphone usage surges. Alibaba’s incentives will cover everyday consumer activities, from food and beverages to entertainment, and will prominently feature digital “red envelope” giveaways—a culturally established New Year tradition that has become a powerful tool for app distribution.
Key Campaign Details:
– Promotional Budget: 3 billion yuan ($431 million USD)
– Campaign Launch Date: February 6, 2026
– Lunar New Year Holiday: February 15, 2026 (lasting nine days)
– Upcoming Earnings Report: February 19, 2026
The Strategic Timing of the Lunar New Year Push
The choice of timing is a calculated one. Chinese technology giants have long treated the Lunar New Year as a prime marketing season. During this period, hundreds of millions of people are on the move, spend increased time on mobile devices, and are highly receptive to digital gifting campaigns.
A precedent was set by Tencent in 2015. The company’s integration of digital “Red Envelopes” within WeChat successfully popularized in-app payments, bolstering WeChat Pay in its competition against Alibaba’s Alipay. Alibaba is now applying this same strategic logic to the AI arena, aiming to make Qwen a default application during the holidays to secure long-term user retention.
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Beyond Marketing: A Broader AI Infrastructure Push
This consumer-facing promotion coincides with several strategic advancements in Alibaba’s underlying AI infrastructure:
- The company has reportedly shipped more than 100,000 units of its proprietary AI chip, the Zhenwu 810E, an application-specific integrated circuit (ASIC) designed for both training and inference.
- Bloomberg reports indicate that Alibaba is planning an initial public offering (IPO) for its chip unit, T-Head.
- Chinese regulators granted approval in late January for Alibaba and other major tech firms to purchase Nvidia’s H200 AI chips.
The substantial marketing investment represents the visible tip of a broader strategy. Beneath the surface, Alibaba is working to integrate computing power, semiconductor technology, and product development to ensure Qwen can compete not only in reach but also in technical capability.
Market dynamics have intensified following the January 2025 launch of DeepSeek’s R1 model, which accelerated competition in China’s AI sector. Furthermore, DeepSeek’s next model, V4, is reportedly expected in mid-February—directly within the same competitive window where Alibaba and its rivals are vying for user attention.
Financial Context and Forthcoming Test
Alibaba’s shares recently closed at 142.00 euros, reflecting a decline of 2.34% over the preceding seven trading days. This places the stock in a tension between short-term weakness and a strong year-on-year performance comparison.
The company’s next quarterly results, due on February 19, will serve as a crucial benchmark. Investors will scrutinize how the costs of this AI offensive are reflected in the company’s investments. Significant focus will also be on any signals regarding the future trajectory of Alibaba’s cloud business, which recently reported impressive 34% revenue growth.
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