The competition in the AI field is so intense that users of chatbots are receiving rewards in the form of actual money, iPhones, and televisions.
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With billions on the line and Apple closely observing, leading AI companies in China are transforming user acquisition into a high-stakes promotional battle ahead of the upcoming launches of their next-generation models.
Nadeem Sarwar / Digital Trends
Chinese AI leaders like Alibaba, Tencent, and Baidu are utilizing "red envelopes" or cash gifts to attract users to their chatbots prior to the anticipated debut of their new AI models later this month, according to a Techxplore report citing AFP.
For example, Alibaba has set aside a budget of CNY 3 billion (roughly USD 430 million) to reward users of its AI application, Qwen. The promotional effort is set to begin on February 6, 2026, aligned with the Chinese New Year.
Qwen Chat / Alibaba
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Following Alibaba, Tencent and Baidu are also set to launch their promotional campaigns. Tencent has pledged CNY 1 billion, offering top prizes of around CNY 10,000, while Baidu is giving away CNY 500 million in cash as well as items like iPhones and TVs.
To qualify for cash prizes or iPhones, Chinese users must register with the designated AI applications and engage with them (by asking questions about complicated subjects, making holiday plans, etc.) during the promotional timeframe; it’s quite straightforward.
It’s apparent that the Chinese AI giants are eager to boost their active user count before introducing their new and sophisticated models this month, but the motivations behind the substantial promotional budget of approximately CNY 4.5 billion may extend beyond that.
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As they unveil advanced AI models, these companies find themselves in competition with international AI entities like Google and OpenAI. Alibaba, for example, asserts that its Qwen3-Max-Thinking model surpasses Google’s Gemini 3 in reasoning capabilities.
In that context, the Chinese firms are also looking to become Apple’s local AI partner in the region. As Apple cannot utilize Gemini for its advanced AI features (including the updated Siri) in China, it must delegate backend operations to a platform that adheres to its strict requirements.
A Bloomberg report from February 2025 suggests that Apple will employ Alibaba’s AI in China, though the iPhone manufacturer has yet to verify this information. Once Apple selects a Chinese partner for its forthcoming Apple Intelligence features, it is expected to announce the provider either publicly or to its investors.
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The competition in the AI field is so intense that users of chatbots are receiving rewards in the form of actual money, iPhones, and televisions.
In 2026, Alibaba, Tencent, and Baidu are offering billions in cash and prizes to entice chatbot users, underscoring the intense competition in China's AI sector.
