China's AI Apps Wage Red Envelope War for Lunar New Year Users

China's artificial intelligence giants are unleashing a fierce competition for users ahead of the Lunar New Year, deploying the traditional "red envelope" digital giveaways that have become a hallmark of the country's tech battles. Alibaba, Tencent, ByteDance, and DeepSeek are all stepping up their efforts to capture market share during what industry insiders call the "crucial" holiday season.

The intensifying battle for AI app users in China echoes earlier fights among e-commerce and social media platforms for market dominance. Just as these platforms once competed for consumer attention through aggressive marketing and user acquisition strategies, today's AI companies are leveraging similar tactics to establish their foothold in the rapidly evolving artificial intelligence landscape.

This year's Lunar New Year competition is particularly significant as it represents one of the largest concentrated periods of consumer activity in Asia's largest economy. Companies are releasing new AI models while simultaneously offering substantial incentives to attract and retain users during this peak season.

The strategy of using red envelopes—digital cash gifts traditionally exchanged during Lunar New Year—has proven effective in previous tech platform battles. By offering these incentives, AI companies aim to lower the barrier for users to try their services while creating viral growth through social sharing mechanisms inherent in the red envelope tradition.

Industry analysts note that this competition reflects the maturing AI market in China, where multiple players are now vying for consumer attention rather than the earlier period dominated by a few major players. The battle extends beyond just user acquisition to include the quality and capabilities of the AI models themselves, with companies racing to demonstrate technological superiority alongside their marketing efforts.

The timing is strategic: the Lunar New Year period typically sees increased leisure time and digital engagement, making it an ideal moment for companies to showcase their AI capabilities and convert casual users into regular customers. Success during this period could establish momentum that carries through the rest of the year.

This competition also highlights the broader trend of AI integration into everyday consumer applications in China, as companies work to make artificial intelligence accessible and appealing to mainstream users rather than just tech enthusiasts or enterprise customers.