China’s Tech Giants Spent $700 Bln in AI Red Envelope for Lunar New Year 

This February, China welcomed the Year of the Horse, the traditional Lunar New Year holiday unexpectedly became an AI Lunar year.

This February, China welcomed the Year of the Horse, the traditional New Year holiday unexpectedly became an AI Lunar year, a showground for AI competition, with major tech firms turning family gatherings, festive meals, and fireworks into an all-out user acquisition campaign. 

The holiday, normally a time for reflection and togetherness in the culture, became a launchpad for AI adoption, for the whole world to witness, as companies leveraged traditional celebrations to attract millions of users through promotions, gamified experiences, and digital rewards.  

These campaigns allowed culture and commerce to intertwine, birthing both short-term buzz and long-term engagement opportunities. They also illustrate how tech firms are experimenting with mass-scale Lunar year AI avatars exposure, setting the stage for global trends in holiday-driven digital adoption. 

Lunar New Year AI Meets Tradition 

The Spring Festival China’s most important holiday is a nine-day period defined by mass travel, family gatherings, and cultural ceremonies. Tech giants seized the moment to roll out a mix of festivals synthetic media promotions that combine deeply rooted customs with AI Lunar year driven incentives: 
 
– Digital “red envelope” cash giveaways tied to AI apps; 
 
– Free or discounted food and drinks triggered through chatbot interactions; 
 
– Luxury prizes, including electric cars and robots, awarded via lucky draws; 
 
– Generative Lunar year AI avatars embedded into e-commerce, travel, and everyday tasks. 

China’s Giants Poured Billions into Lunar Year  

Alibaba distributed roughly $430 million (3 billion yuan) to promote its Qwen AI assistant, offering an updated ‘red envelope’ which caused drama after the launch. 

Tencent got countered with a $140 million (1 billion yuan) giveaway through Yuanbao AI, delivering cash rewards directly into consumer wallets that are used across social and payment apps.  

Baidu invested hundreds of millions into its Ernie chatbot ecosystem, and ByteDance tied its Doubao AI to hundreds of thousands of high value prizes during the festivals synthetic media of the Spring Festival Gala. 

Being able to control user attention now with festivals synthetic media creates a space for rewards when monetization is developed, highlighting the strategic goal behind the holiday campaigns. 

Cultural Cash, Consumer Buzz, and Lasting AI Lunar year Impact 

Chinese tech giants adding Lunar year digital avatars into familiar cultural rituals normalizes usage with a dash of holiday sentiment.  

“Red envelopes” are traditional symbols of luck and prosperity that were digitally integrated with substantial cash rewards, merging heritage with tech.  

Televised events, such as the Spring Festival Gala, also became prime real estate for brand exposure, showing AI products to tens of millions. Experts see this approach as critical for cultivating habitual use among hundreds of millions of consumers. 

Early results were striking, testing local infrastructure, and overwhelming vendors. One Shenzhen banker who joined Alibaba’s Qwen promotion said he planned to explore other AI services, suggesting that beyond freebies, the technology itself is drawing new users. 

Chinese firms are using cultural cash giveaways and AI Lunar year promotions to lock in consumers, turning a traditional holiday into a showcase for AI adoption while reshaping how society interacts with digital technology, blending entertainment, commerce, and innovation.  

The campaigns show how cultural timing and consumer behavior can be heightened to fasten adoption at an unprecedented scale. They also show a global trend which is how tech companies are increasingly using Lunar year digital avatars, major holidays, and events to compete for user attention and embed AI into daily life. 

Beyond consumer attention, these campaigns accelerate AI adoption, signal China’s confidence in domestic AI, and test regulatory boundaries.  

Yet a researcher director told reporters caution that while big giveaways drive initial traction, “It’s similar to past digital milestones – big giveaways drive initial traction, but real success comes from developing genuinely useful tools that users rely on daily.” 

As the future AI festivals determine, China’s Lunar New Year AI blitz may either leave a lasting AI Lunar year imprint on the sector or stand out as a remarkable, one-time spectacle a vivid reminder of how technology can weave into cultural traditions. 


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