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Alibaba commits RMB 3BN to Lunar New Year AI subsidy war

Alibaba has committed RMB 3 billion ($432 million) to promote its AI chatbot Qwen, report Caixin. This move escalates a Lunar New Year subsidy war with rivals Tencent and Baidu 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 February 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.

A person close to Alibaba previously told Caixin that Qwen is the group’s priority AI project and is positioned as its primary entry point for AI users. The RMB 3 billion commitment marks the largest outlay in Alibaba’s history of Spring Festival promotions and currently represents the biggest single investment in this year’s holiday marketing battle.

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