Alibaba Raises Stakes in China’s Chatbot War

Alibaba Raises Stakes in China’s Chatbot War

Alibaba Raises Stakes in China’s Chatbot War

https://www.pymnts.com/news/artificial-intelligence/2026/alibaba-raises-stakes-china-chatbot-war-ahead-lunar-new-year/

Publish Date: 2026-02-02 10:51:00

Source Domain: www.pymnts.com

  • Alibaba plans to spend 3 billion yuan ($432 million) during the Lunar New Year to promote its Qwen AI app, using incentives for dining, drinks, and entertainment.
  • This move intensifies the competition among China’s biggest tech firms to attract users to consumer-facing AI chatbots.
  • In January, Alibaba added agentic and payments capabilities to Qwen, enabling in-chat purchases.
  • The spending pledge triples the budgets announced by rivals Tencent and Baidu, emphasizing the aggressive market strategies during the festive season.
  • The Lunar New Year, which begins Feb. 15, serves as a digital battleground with increased smartphone usage as millions travel and socialize.
  • Competition in China’s AI sector is intensifying, with several firms, including DeepSeek, launching upgraded models and promotional campaigns to boost adoption.